Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Connect Biopharma Holdings Limited |
Entity Central Index Key | 0001835268 |
Document Annual Report | true |
Document Transition Report | false |
Document Registration Statement | false |
Document Shell Company Report | false |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Well-known Seasoned Issuer | No |
ICFR Auditor Attestation Flag | false |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 55,041,247 |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Trading Symbol | CNTB |
Title of 12(b) Security | American Depositary Shares, each representing one Ordinary Share, par value $0.000174 per Share |
Security Exchange Name | NASDAQ |
Entity Incorporation, State or Country Code | E9 |
Entity File Number | 001-40212 |
Entity Address, Address Line One | 12265 El Camino Real |
Entity Address, Address Line Two | Suite 350 |
Entity Address, City or Town | San Diego |
Entity Address, State or Province | CA |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 92130 |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Beijing, the People’s Republic of China |
Auditor Firm ID | 1424 |
Business Contact Person | |
Document Information [Line Items] | |
Contact Personnel Name | Dr. Zheng Wei |
Entity Address, Address Line One | 12265 El Camino Real |
Entity Address, Address Line Two | Suite 350 |
Entity Address, City or Town | San Diego |
Entity Address, State or Province | CA |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 92130 |
City Area Code | +1 (858) |
Local Phone Number | 727-1045 |
Phone Fax Number Description | +1 (858) 614-7007 |
Consolidated Statements of Loss
Consolidated Statements of Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares | ||
Profit or loss [abstract] | |||||
Research and development expenses | ¥ (652,211) | $ (93,646) | ¥ (518,021) | ¥ (150,932) | |
Administrative expenses | (139,444) | (20,022) | (122,445) | (47,720) | |
Net impairment losses | (32,805) | [1] | (4,710) | ||
Other income | 6,438 | 924 | 18,996 | 6,989 | |
Other (losses)/gains-net | 12,433 | 1,785 | (9,966) | (6,100) | |
Operating loss | (805,600) | (115,700) | (631,436) | (197,763) | |
Finance income | 10,715 | 1,538 | 622 | 717 | |
Finance cost | (144) | (21) | (44) | (2,893) | |
Finance (cost)/income-net | 10,571 | 1,517 | 578 | (2,176) | |
Fair value loss of financial instruments with preferred rights | (674,269) | (579,286) | |||
Net loss before income tax | (795,018) | (114,152) | (1,305,127) | (779,225) | |
Income tax expense | (2,037) | (292) | (1,697) | ||
Net loss | (797,055) | (114,444) | (1,306,824) | (779,225) | |
Net loss attributable to: | |||||
Owners of the Company | ¥ (797,055) | $ (114,444) | ¥ (1,306,824) | ¥ (779,225) | |
Loss per share | |||||
Basic net loss per share | (per share) | ¥ (14.5) | $ (2.1) | ¥ (25) | ¥ (45.6) | |
Diluted net loss per share | (per share) | ¥ (14.5) | $ (2.1) | ¥ (25) | ¥ (45.6) | |
[1] The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Statement of comprehensive income [abstract] | ||||
Net loss | ¥ (797,055) | $ (114,444) | ¥ (1,306,824) | ¥ (779,225) |
Items that may be reclassified to profit or loss | ||||
Exchange differences on translation of foreign operations | (135,188) | (19,411) | 20,426 | 34,655 |
Changes in the fair value of debt instruments at fair value through other comprehensive income | (2,513) | (361) | ||
Items that will not be reclassified to profit or loss | ||||
Exchange differences on translation of foreign operations | 250,065 | 35,905 | (57,464) | 12,377 |
Other comprehensive (loss)/income for the year, net of tax | 112,364 | 16,133 | (37,038) | 47,032 |
Total comprehensive loss for the year | (684,691) | (98,311) | (1,343,862) | (732,193) |
Total comprehensive loss attributable to: | ||||
Owners of the Company | ¥ (684,691) | $ (98,311) | ¥ (1,343,862) | ¥ (732,193) |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Non-current assets | |||
Property, plant and equipment | ¥ 34,659 | $ 4,976 | ¥ 59,337 |
Right-of-use assets | 24,337 | 3,494 | 22,821 |
Intangible assets | 499 | 72 | 560 |
Investments: | |||
Financial assets at fair value through other comprehensive income | 65,700 | 9,400 | |
Other non-current assets | 1,754 | 252 | 18,806 |
Total non-current assets | 126,993 | 18,234 | 101,524 |
Current assets | |||
Other receivables and prepayments | 23,413 | 3,362 | 47,255 |
Investments: | |||
Financial assets at fair value through other comprehensive income | 511,300 | 73,407 | |
Cash and cash equivalents | 550,274 | 79,010 | 1,706,880 |
Total current assets | 1,084,937 | 155,779 | 1,754,135 |
Total assets | 1,211,930 | 174,013 | 1,855,659 |
Non-current liabilities | |||
Lease liabilities | 1,704 | 245 | 163 |
Deferred income | 4,539 | 652 | 5,000 |
Total non-current liabilities | 6,243 | 897 | 5,163 |
Current liabilities | |||
Trade payables | 83,138 | 11,937 | 81,195 |
Other payables and accruals | 24,385 | 3,501 | 32,840 |
Lease liabilities | 1,294 | 186 | 630 |
Total current liabilities | 108,817 | 15,624 | 114,665 |
Total liabilities | 115,060 | 16,521 | 119,828 |
Net assets | 1,096,900 | 157,500 | 1,735,831 |
SHAREHOLDERS' EQUITY | |||
Share capital | 66 | 9 | 66 |
Share premium | 4,094,566 | 587,911 | 4,094,434 |
Treasury shares | (1,164) | (167) | (1,164) |
Share-based compensation reserves | 107,502 | 15,435 | 61,904 |
Other reserves | 71,120 | 10,212 | (41,244) |
Accumulated losses | (3,175,220) | (455,908) | (2,378,165) |
Total shareholders'equity | 1,096,870 | 157,492 | 1,735,831 |
Total liabilities and shareholders' equity | ¥ 1,211,930 | $ 174,013 | ¥ 1,855,659 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' (Deficit)/Equity ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Share Capital CNY (¥) | Share Premium CNY (¥) | Treasury Shares CNY (¥) | Share-Based Compensation Reserves CNY (¥) | Other Reserves CNY (¥) | Accumulated Losses CNY (¥) |
Balance at Dec. 31, 2019 | ¥ (298,287) | ¥ 21 | ¥ 38,123 | ¥ (1) | ¥ 4,411 | ¥ (48,725) | ¥ (292,116) | |
Comprehensive loss | ||||||||
Net loss | (779,225) | (779,225) | ||||||
Exchange difference | 47,032 | 47,032 | ||||||
Total comprehensive loss for the year | (732,193) | 47,032 | (779,225) | |||||
Transactions with owners | ||||||||
Issuance of shares to co-founders | 1 | 3,343 | (3,344) | |||||
Issuance of treasury shares | 2 | (2) | ||||||
Share-based compensation | 5,535 | 5,535 | ||||||
Total Transactions with owners | 5,535 | 3 | 3,343 | (2) | 2,191 | |||
Balance at Dec. 31, 2020 | (1,024,945) | 24 | 41,466 | (3) | 6,602 | (1,693) | (1,071,341) | |
Comprehensive loss | ||||||||
Net loss | (1,306,824) | (1,306,824) | ||||||
Exchange difference | (37,038) | (37,038) | ||||||
Total comprehensive loss for the year | (1,343,862) | (37,038) | (1,306,824) | |||||
Transactions with owners | ||||||||
Issuance of ordinary shares, net of issuance costs | 1,305,819 | 14 | 1,305,805 | |||||
Conversion from preferred shares to ordinary shares | 2,743,625 | 28 | 2,743,597 | |||||
Repurchase of ordinary shares value | (3,674) | (1,161) | (2,513) | |||||
Exercise of stock options | 1,005 | 2,149 | (1,144) | |||||
Issuance of shares to co-founders | 1,417 | (1,417) | ||||||
Share-based compensation | 57,863 | 57,863 | ||||||
Total Transactions with owners | 4,104,638 | 42 | 4,052,968 | (1,161) | 55,302 | (2,513) | ||
Balance at Dec. 31, 2021 | 1,735,831 | 66 | 4,094,434 | (1,164) | 61,904 | (41,244) | (2,378,165) | |
Comprehensive loss | ||||||||
Net loss | (797,055) | $ (114,444) | (797,055) | |||||
Unrealized losses from investments | (2,513) | (2,513) | ||||||
Exchange difference | 114,877 | 114,877 | ||||||
Total comprehensive loss for the year | (684,691) | (98,311) | 112,364 | (797,055) | ||||
Transactions with owners | ||||||||
Issuance of ordinary shares, net of issuance costs | 132 | 132 | ||||||
Share-based compensation | 45,598 | 45,598 | ||||||
Total Transactions with owners | 45,730 | 132 | 45,598 | |||||
Balance at Dec. 31, 2022 | ¥ 1,096,870 | $ 157,492 | ¥ 66 | ¥ 4,094,566 | ¥ (1,164) | ¥ 107,502 | ¥ 71,120 | ¥ (3,175,220) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities | ||||
Cash used in operations | ¥ (679,665) | $ (97,588) | ¥ (544,926) | ¥ (167,161) |
Net cash used in operating activities | (679,700) | (97,588) | (544,926) | (167,161) |
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (29,320) | (4,210) | (24,941) | (14,955) |
Purchase of financial assets at fair value through profit or loss | (41,000) | (5,887) | (114,500) | (106,600) |
Purchase of financial assets at fair value through other comprehensive income | (737,494) | (105,892) | ||
Proceeds from disposal of financial assets at fair value through profit or loss | 41,140 | 5,907 | 128,004 | 124,836 |
Proceeds from maturities of financial assets at fair value through comprehensive income | 195,364 | 28,051 | ||
Payment for right-of-use assets | (22,284) | |||
Purchase of intangible assets | (304) | (349) | ||
Net cash (used in)/ generated from investing activities | (571,310) | (82,031) | (34,025) | 2,932 |
Cash flows from financing activities | ||||
Proceeds from exercise of options | 758 | 110 | 243 | |
Proceeds from issuance of ordinary shares | 132 | 18 | 1,431,775 | |
Proceeds from issuance of financial instruments with preferred rights | 923,247 | |||
Payment for lease liabilities | (1,515) | (218) | (805) | (538) |
Payment for repurchase of ordinary shares | (3,674) | |||
Issuance cost of financial instruments with preferred rights | (2,851) | |||
Payment in relation to listing expenses | (111,440) | (1,097) | ||
Net cash (used in)/ generated from financing activities | (625) | (90) | 1,316,099 | 918,761 |
Net (decrease) increase in cash and cash equivalents | (1,251,600) | (179,709) | 737,148 | 754,532 |
Cash and cash equivalents at the beginning of year | 1,706,880 | 245,079 | 1,010,076 | 308,972 |
Effects of exchange rate changes on cash and cash equivalents | 94,994 | 13,640 | (40,344) | (53,428) |
Cash and cash equivalents at end of year | ¥ 550,274 | $ 79,010 | ¥ 1,706,880 | ¥ 1,010,076 |
General Information, Reorganiza
General Information, Reorganization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Abstract] | |
General Information, Reorganization and Basis of Presentation | 1. General Information, Reorganization and Basis of Presentation 1.1 General information Connect Biopharma Holdings Limited (the “Company”) was incorporated on November 23, 2015 in the Cayman Islands as an exempted company with limited liability. The address of the Company’s registered office is P.O. Box 613, Harbour Centre, George Town, Grand Cayman KY1-1107, Cayman Islands. The Company completed its initial public offering (“IPO”) in March 2021 and the Company’s American Depositary Shares (“ADSs”) have been listed on the Nasdaq Global Market (“Nasdaq”) since then. Each ADS of the Company represents one ordinary share, par value USD 0.000174 per share. The Company and its subsidiaries (collectively the “Group”) is a clinical-stage company focused on the discovery and development of next-generation immune modulators for the treatment of serious autoimmune diseases and inflammation. The Group has leveraged its expertise in the biology of T cell modulation to build a portfolio of drug candidates consisting of small molecules and antibodies targeting critical pathways of inflammation. The Group currently carries out clinical trials on its product candidates in the United States, the People’s Republic of China (“PRC”), Australia, Europe, and other jurisdictions. As of December 31, 2022, the Company had direct or indirect interests in the following principal subsidiaries: Company name Principal activities Place and date of incorporation Attributable equity interest to the Group Directly Held: Connect Biopharma HongKong Limited (“Connect HK”) Investment holding Hong Kong / December 1, 2015 100 % Indirectly held: Connect Biopharm LLC (“Connect US”) Pharmaceutical R&D San Diego, United States of America / January 24, 2012 100 % Connect Biopharma Australia PTY LTD (“Connect AU”) Pharmaceutical R&D Prahran, Australia / July 18, 2014 100 % Suzhou Connect Biopharma Co., Ltd. (“Connect SZ”) Pharmaceutical R&D Suzhou, PRC / May 2, 2012 100 % Connect Biopharma (Shanghai) Co., Ltd Pharmaceutical R&D Shanghai, PRC / October 23, 2015 100 % Connect Biopharma (Beijing) Co., Ltd Pharmaceutical R&D Beijing, PRC / July 9, 2019 100 % Connect Biopharma (Shenzhen) Co., Ltd Pharmaceutical R&D Shenzhen, PRC / November 15, 2021 100 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The Group’s consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The Group adopted and transitioned to IFRS issued by IASB on January 1, 2018. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and financial instruments with preferred rights. In preparing its consolidated financial statements prepared under IFRS, the Group early adopted IFRS 9 Financial Instruments (“IFRS 9”) and IFRS 16 Leases (“IFRS 16”) on January 1, 2018. The Group has applied the following standards and amendments for the first time for our annual reporting period commencing January 1, 2022, which did not have any material impact on the consolidated financial statements: Amendments to IFRS 3, "Business Combinations" - acquisition method. Amendments to IAS 16, "Property, Plant and Equipment" - measurement and depreciation for property, plant and equipment. Amendments to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets" - accounting for provisions and contingent assets and liabilities. Annual improvements on IFRS 1, "First-time Adoption of IFRS", IFRS 9, "Financial Instruments", IAS 41, "Agriculture" - adoption of IFRS procedures, derecognition of financial liabilities, and measurement of biological assets, respectively. General improvements on IFRS 16, "Leases" - single lessee accounting model. Amendments to IFRS 16, "COVID-19-Related Rent Concessions" - exemption from assessing COVID-19-related rent concessions. Amendments to IAS 37, "Onerous Contracts — Cost of Fulfilling a Contract" - evaluation of the costs of fulfilling a contract in onerous contracts. The consolidated financial statements for the years ended December 31, 2020, 2021 and 2022 were authorized for issue by the Company’s board of directors (the “Board”) on April 11, 2023. Liquidity Since inception, the Group has incu rred accumulated losses of RMB 3,175.2 million (USD 455.9 million). For the year ended December 31, 2022, the Group had net operating loss of RMB 805.6 million (USD 115.7 million) and net operating cash outflow of RMB 679.7 million (USD 97.6 million). The principal sources of funding have historically been cash contributions from equity holders. The cumulative contributions up through December 31, 2022 approximated US D 440.1 million, among which included USD 219.9 million of proceeds from issuance of ordinary shares in connection with the IPO or RMB 1,431.8 million based on the exchange rate as of the date of the IPO. As of December 31, 2022, the Group had net assets of RMB 1,096.9 million (USD 157.5 million), including cash, cash equivalents, and short-term investments at fair value through other comprehensive income of RMB 1,061.5 million (USD 152.4 million) and long-term investments at fair value through other comprehensive income of RMB 65.7 million (USD 9.4 million). Taking this into consideration, the Group believes it will have sufficient available financial resources to meet its obligations and working capital requirements for at least in the next twelve months from the date of issuance of these financial statements. Accordingly, the Group considers that it is appropriate to prepare the consolidated financial information on a going concern basis. Impact of COVID-19 In December 2019, a novel strain of coronavirus was reported in Wuhan, China and on March 11, 2020 the WHO declared COVID-19 a pandemic. The COVID-19 pandemic has resulted in a widespread health crisis and numerous disease control measures being taken to limit its spread. As the pandemic continues its impact throughout the world, the healthcare systems of the various countries in which we are conducting ongoing clinical trials of CBP-201 and CBP-307 have and may continue to experience disruption. In 2020, enrollment in our Phase 2 clinical trial of CBP-307 for patients with Chron's Disease ("CD") in the PRC was prematurely terminated due to challenges in recruitment caused by the COVID-19 pandemic. In 2021, enrollment in one phase 1 clinical trial of CBP-307 and the phase 1 clinical trial of CBP-174 in Australia were also impacted due to the COVID-19 pandemic. In 2022, our Phase 2 clinical trial of CBP-201 in patients with Chronic Rhinosinusitis with Nasal Polyps was early terminated in part due to the COVID-19 pandemic. 2.2 New and amended standards and interpretations not yet adopted by the Group The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective in the consolidated financial statements. Effective for annual periods beginning on or after Narrow scope amendments to IAS 8 for accounting policies, changes in estimates and errors January 1, 2023 Amendments to IAS 12 for deferred tax related to assets and liabilities arising from a single transaction January 1, 2023 Amendments to IAS 1 for presentation of financial statements’ classification of liabilities January 1, 2024 Amendments to IAS 1 for disclosures of accounting policies January 1, 2023 Application of IFRS 17 for accounting of insurance contracts January 1, 2023 The Group expects to adopt these standards, updates and interpretations when they become mandatory. These standards are not expected to have a material impact on disclosures or amounts reported in the Group’s consolidated financial statements in the period of initial application and future reporting periods. 2.3 Principles of consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intra-group transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. 2.4 Separate financial statements Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill. 2.5 Foreign currency translation (a) Functional and presentation currency The consolidated financial statements of the Group are presented in RMB as the historical records for its entities were set-up for consolidations in RMB. The functional currency of the Company is USD. Subsidiaries have functional currencies in USD, RMB and Australian dollars. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Since the Group has no borrowings, all foreign exchange gains or losses are presented in the consolidated statements of loss on a net basis within other (losses)/gains-net. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income. (c) Group companies The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; • income and expenses for each statement of loss and comprehensive income/(loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and • all resulting currency translation differences are recognized in other comprehensive income/loss. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. (d) Convenience translation Translations of the consolidated balance sheet, the consolidated statement of loss, consolidated statement of comprehensive loss and consolidated statement of cash flows from RMB into USD as of and for the year ended December 31, 2022 are solely for the convenience of the readers and calculated at the rate of USD 1.00=RMB 6.9646 , representing the exchange rate as of December 31, 2022 set forth in the China Foreign Exchange Trade System. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate, or at any other rate, on December 31, 2022. 2.6 Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The Group’s assets under construction represents buildings and equipment under construction and pending installation, and is stated at cost less accumulated impairment losses, if any. Costs include construction and acquisition costs. No provision for depreciation is made on assets under construction until such time as the assets are completed and ready for its intended use. Once the asset becomes available for use, it is transferred to the appropriate category of assets. Depreciation is calculated using the straight-line method to allocate the cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements, the shorter lease term as follows: Assets Useful life Laboratory equipment 5 - 10 years Leasehold improvements Shorter of lease term or 5 years Office equipment and furniture 3 - 5 years The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized within other gains/(losses)—net in the statements of loss. 2.7 Intangible assets Software Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring the specific software into usage. These costs are amortized using the straight-line method over their estimated useful lives of approximately 10 years . Costs associated with maintaining software programs are recognized as expense as incurred. 2.8 Impairment of non-financial assets Non-financial assets other than goodwill and intangible assets that have an indefinite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. 2.9 Investments and other financial assets (a) Classification The Group classifies its financial assets in the following measurement categories: • those to be measured subsequently at fair value (either through other comprehensive income (“OCI”) or through profit or loss), and • those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI (“FVOCI”). The Group reclassifies debt investments when and only when its business model for managing those assets changes. (b) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. (c) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial asset carried at FVTPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. (i) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: • Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statements of loss. • FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as a separate line item in the statements of loss. • FVTPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in profit or loss and presented net within other gains/(losses) in the period in which it arises. (ii) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognized in other gains/(losses) in the statements of loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. There were no equity investments during the reporting periods. (d) Impairment The Group assesses on a forward-looking basis the expected credit loss associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk refer to Note 3.1(b) for further details. 2.10 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 2.11 Share capital Ordinary shares are classified as equity. Mandatorily redeemable preferred shares are classified as liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the owners of the Group as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the Group. Shares previously held by Connect Union, which was established for the purpose of holding shares for the share incentive plans, are disclosed as treasury shares and deducted from contributed equity. 2.12 Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. 2.13 Financial instruments with preferred rights Financial instruments with preferred rights are compound instruments with discretionary dividend right. The Group elected to designate the entire hybrid contracts that include host contract and embedded derivatives as financial liabilities at fair value through profit or loss considering the fact that the instruments also have contingent settlement provisions. They are initially recognized at fair value. Any directly attributable transaction costs are expensed in the consolidated statements of loss. Subsequent to initial recognition, the amount of change in the fair value of the financial instruments with preferred rights that is attributable to changes in the credit risk of that liability shall be presented in OCI with the remaining changes in fair value recognized as “fair value loss of financial instruments with preferred rights” in profit or loss. Dividends on financial instruments with preferred rights classified as financial liabilities are normally included in financial costs. On March 19, 2021, upon completion of the IPO, all issued and outstanding preferred shares were converted to ordinary shares on a one -for-one basis. 2.14 Current and deferred income tax The income tax expense or credit for the period is the tax payable on the taxable income of current period based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. (a) Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. (b) Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Investment allowances and similar tax incentives Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in relation to qualifying expenditure (e.g. the research and development tax incentive or other investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for unclaimed tax credits that are carried forward as deferred tax assets. 2.15 Employee benefits (a) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in other payables and accruals in the balance sheet. (b) Defined benefit plans The liability or asset recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service costs. (c) Defined contribution plans For defined contribution plans, including those under Section 401(k) of the U.S. Internal Revenue Code, the Group pays contributions to publicly administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. The subsidiaries of the Group incorporated in the PRC contribute based on a certain percentage of the salaries of their employees to a defined contribution retirement benefit plan organized by relevant government authorities in the PRC on a monthly basis. The government authorities undertake to assume the retirement benefit obligations payable to all existing and further retired employees under these plans and the Group has no further obligation for post-retirement benefits beyond the contributions made. Contributions to these plans are expensed as incurred. Assets of the plans are held and managed by government authorities and are separate from those of the Group. (d) Housing funds and medical insurance The PRC employees of the Group are entitled to participate in various government-supervised housing funds and medical insurance. The Group contributes on a monthly basis to these funds based on a certain percentage of the salaries of the employees, subject to certain ceilings. The Group’s liability in respect of these funds is limited to the contribution payable in each period and recognized as employee benefit expense when they are due. 2.16 Share-based compensation The Group operates an equity-settled share-based compensation plan, under which the Group receives services from employees, directors and consultants. The consultants’ work for the Group is under the Group’s direction in the same way as employees and the services rendered by the consultants are similar to those rendered by the Group’s employees. The fair value of options granted under the share incentive plans is recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted: • including any market performance conditions (e.g. the entity’s share price); • excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales growth targets and remaining an employee of the entity over a specified time period); and • including the impact of any non-vesting conditions (e.g. the requirement for employees to save or hold shares for a specific period of time). The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. The Group recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. 2.17 Research and development expenses The Group incurs costs and efforts on research and development activities. Research expenditures are recorded as an expense in the period the expenditure is incurred. Elements of research and development expenses primarily include (1) expenses related to preclinical testing of the Group’s technologies under development and clinical trials such as payments to Contract Research Organizations ("CRO") investigators and clinical trial sites that conduct the clinical studies; (2) consultant service related to the design of clinical trials and data analysis, (3) payroll and other related expenses of personnel engaged in research and development activities, (4) expenses to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, and (5) other research and development expenses. The Group estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical and clinical studies and research services on its behalf. The Group estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Group will adjust the accrual accordingly. Payments made in advance for the related services are recorded as prepayments in the consolidated b |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments and Risk Management | 3. Financial Instruments and Risk Management 3.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk and exchange risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out by the senior management of the Group. (a) Market risk (i) Interest rate risk The Group’s interest rate risk primarily arises from investments in wealth management products, investments measured at fair value through other comprehensive income, investments measured at fair value through profit or loss (Note 17) and cash and cash equivalents (Note 18). Those carried at variable rates expose the Group to cash flow interest rate risk whereas those at fixed rates expose the Group to fair value interest rate risk. The Group currently does not hold any debt or other borrowing facilities that would subject the Group to risk from interest rate fluctuations. (ii) Exchange risk The Group operates internationally and is exposed to foreign exchange risk, primarily the USD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant group entity. The Group’s exposure to foreign currency risk at the end of the reporting periods, expressed in RMB, was as follows: As of December 31, 2021 2022 RMB’000 RMB’000 Cash and cash equivalents 150,640 113,583 The aggregate net foreign exchange (losses)/gains recognized in profit or loss were: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net foreign exchange (losses)/gains included in other (losses)/gains—net ( 6,772 ) ( 3,309 ) 9,629 Most foreign exchange transactions were denominated in USD for the subsidiary that has functional currency in RMB. For the years ended December 31, 2020, 2021 and 2022, if the USD str engthened/weakened by 5 % against the RMB with all other variables held constant, net loss for the years then ended would have been RMB 3.3 million lower/higher, RMB 7.5 million lower/higher and RMB 5.7 million lower/higher, respectively. (b) Credit risk Credit risk primarily arises from cash and cash equivalents, financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and other receivables. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheets. The credit risk of cash and cash equivalents, financial assets at fair value through profit or loss, and financial assets at fair value through other comprehensive income, is limited because the counterparties are reputable commercial institutions located in the Cayman Islands, the U.S., PRC and Australia. Additionally, there may be credit risk with deposit accounts at banking institutions in which balances exceeds each country’s insurance limits for such accounts. For other receivables, management makes periodic as well as individual assessments on the recoverability based on historical settlement records and past experience and adjusts for forward looking information based on macroeconomic factors affecting the ability of the debtors to settle the receivables. The Group applies the expected credit loss model to financial assets measured at amortized cost. Impairment on other receivables is measured as either 12-month expected credit losses or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition. To assess whether there is a significant increase in credit risk, the Group compares the risk of default occurring on the asset as of the reporting date with the risk of default as of the date of initial recognition by considering available, reasonable and supportive forwarding-looking information. (c) Liquidity risk The Group aims to maintain sufficient cash to meet obligations coming due as well as operating and capital requirements. The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period at each year-end date to the contractual maturity date . The amounts disclosed in the table are the contractual undiscounted cash flows. As of December 31, 2021 Between Between More Less Than 1 and 2 and Than 1 Year 2 Years 5 Years 5 Years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Trade payables 81,195 — — — 81,195 Other payables 21,456 — — — 21,456 Lease liabilities 653 186 — — 839 Total 103,304 186 — — 103,490 As of December 31, 2022 Between Between More Less Than 1 and 2 and Than 1 Year 2 Years 5 Years 5 Years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Trade payables 83,138 — — — 83,138 Other payables 9,426 — — — 9,426 Lease liabilities 1,570 1,412 237 — 3,219 Total 94,134 1,412 237 — 95,783 3.2 Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital by regularly reviewing the capital structure and the overall capital markets. The Group may seek additional financing or debt at terms satisfactory to the Group in order to maintain adequate resources. As of December 31, 2021 and 2022, the Group had no debt outstanding. 3.3 Fair value estimation The table below analyzes the Group’s financial instruments carried at fair value as of December 31, 2022 by level of the inputs to valuation techniques used to measure fair value. As of December 31, 2021, the Group did no t have any financial instruments measured at fair value. Such valuation inputs are categorized into three levels within a fair value hierarchy as follows: (i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). (ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). (iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets Cash equivalents 127,926 — — 127,926 Financial assets at fair value through other comprehensive income 283,238 293,756 — 576,994 Total assets 411,164 293,756 — 704,920 There were no transfers between Levels 1, 2 and 3 during the periods. Financial instruments in Level 1 The fair value of financial instruments identified as Level 1 are supported by quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. Financial instruments in Level 2 The fair value of financial instruments identified as Level 2 is determined by the use of valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific measures. For these financial instruments, all significant inputs required as inputs to fair value are observable. Financial instruments in Level 3 If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3. Level 3 instruments within the Group’s assets and liabilities include short-term investment in wealth management products measured at fair value through profit or loss and financial instruments with preferred rights. Specific valuation techniques used to value financial instruments include: • Quoted market prices or dealer quotes for similar instruments • Comparison of accreted purchase price at trade date to face value at maturity and comparison to prices of subsequent similar transactions; and • A combination of observable and unobservable inputs, including expected rate of return, risk-free rate, expected volatility, discount rate for lack of marketability (“DLOM”), bond terms and conditions, current performance data, etc.,. Financial assets at fair value through profit and loss and financial assets at fair value through other comprehensive income are categorized into Levels 1, 2 and 3 accordingly (see Note 17). |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgements | 12 Months Ended |
Dec. 31, 2022 | |
Critical Accounting Estimates And Judgements [Abstract] | |
Critical Accounting Estimates and Judgements | 4. Critical Accounting Estimates and Judgments The preparation of financial statements requires the use of accounting estimates which, by definition, may not equal the actual results. Management also needs to exercise judgment in applying the Group’s accounting policies. Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. (a) Research and development expenses Research expenditures are recorded as an expense in the period the expenditure is incurred. The Group estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical and clinical studies and research services on its behalf. The Group estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. Payments made in advance for the related services are recorded as prepayments in the consolidated balance sheets until the services are rendered. Research and development expenses are charged to expense as incurred for all periods presented because these expenditures have not met the technical feasibility to complete the development project so that it will be available for use or sale and have no alternative future uses. (b) Fair value of financial assets The fair value of financial assets that are not traded in an active market is determined using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. (c) Fair value of financial instruments with preferred rights The fair value of financial instruments with preferred rights that are not traded in an active market is determined using valuation techniques. The Group first determined the equity value and then allocated the equity value to each element of the Group’s capital structure using either an option pricing backsolve method (“OPM”), or a hybrid method, which employs the concepts of the OPM and the probability-weighted expected return method (“PWERM”) that merged into a single framework. (d) Recognition of share-based compensation expenses The equity-settled share-based compensation options was granted to employees and consultants. The Group has used the Binomial option-pricing model and the Black-Scholes option-pricing model for the employee stock options and employee share purchase plan, respectively, to determine the total fair value of the awarded options, which is to be expensed over the vesting period. Significant estimates on assumptions, such as the fair value of underlying shares, risk-free interest rate, expected volatility and dividend yield, are required to be made by the management. For the details of the key assumptions and estimates used by management in determining the fair values of share based compensation, refer to Note 22. (e) Current and deferred income taxes (i) Deferred income tax The Group recognizes deferred tax assets based on estimates that it is probable to generate sufficient taxable profits in the foreseeable future against which the deductible losses and temporary differences will be utilized. The recognition of deferred tax assets mainly involves management’s judgments and estimations about the timing and the amount of taxable profits of the companies which have tax losses, refer to Note 10 for details. |
Expenses by Nature
Expenses by Nature | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Expenses by Nature | 5. Expenses by Nature Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Clinical trials related expenses 107,440 424,724 551,771 Employee benefit expenses (Note 6) 27,243 120,173 143,819 Professional service fees (i) 31,784 69,498 69,312 R&D materials and consumable supplies 2,127 13,718 7,990 Depreciation and amortization 1,436 4,082 6,940 Office expenses 3,052 3,653 5,056 Expense related to Series C financing (ii) 19,655 — — Others 5,915 4,618 6,767 198,652 640,466 791,655 (i) The Group exclusively licenses CBP-174 from a third-party licensor. Such license is worldwide and royalty-bearing. As of December 31, 2022, CBP-174 has not yet been commercialized, the Group is only subject to a non-refundable, non-creditable license maintenance fee, which is paid to the third-party licensor on an annual basis and recorded as a consultancy fee within research and development expense. (ii) Represents a share-based compensation to additional Series C preferred shareholder, which was recognized as an administrative expense as set forth in Note 22. |
Employee Benefit Expenses
Employee Benefit Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Classes of employee benefits expense [abstract] | |
Employee Benefit Expenses | 6. Employee Benefit Expenses Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Share-based compensation expenses (Note 22) 5,535 57,863 45,598 Wages, salaries and bonuses 19,527 56,122 84,356 Welfare expenses 520 4,820 12,191 Housing funds 690 1,368 1,674 Contributions to defined benefit plan (i, Note 27(d)) 971 — — 27,243 120,173 143,819 (i) The defined benefit plan was established in 2018 for one founder and subsequently terminated in 2020. The aggregate value of the benefits under this plan was fully funded and rolled over into an individual retirement account for the benefit of the founder. The Group does not have any further obligations with respect to such plan and is no longer subject to actuarial risk and investment risk. Employee benefit expenses were charged in the following line items in the consolidated statements of loss: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Research and development expenses 18,405 68,225 80,030 Administrative expenses 8,838 51,948 63,789 27,243 120,173 143,819 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Expense [Abstract] | |
Other Income | 7. Other Income Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Government grants 6,989 18,996 6,438 Government grants are mainly related to cash incentives from the PRC government based on specific milestones or operating expenses incurred in China and tax incentives from the Australian government for conducting clinical research and development activities in Australia. In 2020, the Group received subsidies of RMB 7.0 million. In 2021, the Group received a one-time award of RMB 11.0 million for its successful IPO listing, other subsidies of RMB 6.2 million from the Chinese local government, and RMB 1.6 million from the Australian government as an incentive for research and development activities. In 2022, the Group received subsidies of RMB 5.9 million from the Chinese local government. |
Other (Losses)_Gains-Net
Other (Losses)/Gains-Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income (Losses) Net [Abstract] | |
Other (Losses)/Gains-Net | 8. Other (Losses)/Gains—net Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net foreign exchange (losses)/gains ( 6,772 ) ( 3,309 ) 9,629 Investment income from investments at fair value through profit and loss (iii) — — 1,711 Investment income from wealth management products (ii) 672 436 140 Other (losses)/gains (i) — ( 7,093 ) 953 ( 6,100 ) ( 9,966 ) 12,433 (i) The Group incurred a loss of RMB 7.0 million due to a phishing incident experienced in May 2021 which resulted in the Group remitting such amount to an account set up by the phishers rather than to one of the Group’s vendors. No loss of company data nor any loss or compromise of third-party information has been discovered. The Group filed an insurance claim and during the year ended December 31, 2022 recovered RMB 1.0 million (USD 0.1 million) from its cyber insurance provider. (ii) Investment income from wealth management products is based on discounted cash flows using their expected returns. Changes in fair value of these financial assets are recorded in other (losses)/gains – net in the consolidated statements of loss. The Group had no balance of investments from wealth management products at December 31, 2021 or 2022 (see Note 17(b)). (iii) Investment income from investments at fair value through profit and loss represent investment gains from money market investments included in cash equivalents (see Notes 3.3 and 17(b)). |
Finance (cost)_Income-Net
Finance (cost)/Income-Net | 12 Months Ended |
Dec. 31, 2022 | |
Profit (loss) [abstract] | |
Finance (cost)/Income-Net | 9. Finance (Cost)/Income —net Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Finance income Interest from bank deposits and term deposits 717 622 1,323 Interest income from investments at fair value through other comprehensive income — — 9,392 717 622 10,715 Finance cost Issuance cost of financial instruments with preferred rights ( 2,851 ) — — Interest for lease liabilities ( 42 ) ( 44 ) ( 144 ) ( 2,893 ) ( 44 ) ( 144 ) Finance (cost)/income—net ( 2,176 ) 578 10,571 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Income Taxes | 10. Income Taxes Income tax expense is recognized based on the income tax rates in the following main tax jurisdictions where the Group operates for the years ended December 31, 2020, 2021 and 2022. (a) Cayman Islands The Company is incorporated in the Cayman Islands as an exempted company with limited liabilities under the Companies Law of the Cayman Islands and accordingly, is exempted from Cayman Islands income tax. (b) Hong Kong Hong Kong profits tax rate was 16.5 % as of April 1, 2018, when the two-tiered profits tax regime took effect, under which the tax rate is 8.25 % for assessable profits on the first HK$ 2 million and 16.5 % for any assessable profits in excess. No Hong Kong profit tax was provided for as there was no estimated assessable profit that was subject to Hong Kong profits tax during the years ended December 31, 2020, 2021 or 2022. (c) United States Connect US is organized in the U.S. and is a single member limited liability company that is disregarded for U.S. income tax purposes. During the years ended December 31, 2020, 2021 and 2022 from a U.S. tax perspective, Connect HK is subject to US federal corporate income tax at a rate of 21 % and state income tax in California at a rate of 8.84 % to the extent of the income apportionable to Connect US. No provision for income taxes was made for the year ended December 31, 2020. The provision for income taxes for the years ended December 31, 2021 and 2022 was RMB 1.7 million and RMB 2.0 million, respectively. (d) Australia Connect AU is incorporated in Australia. Companies registered in Australia are subject to Australia profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant Australia tax laws. The applicable tax rate in Australia is 30 %. Connect AU has no taxable income for all periods presented, therefore, no provision for income taxes has been provided. (e) PRC Provision for PRC corporate income tax is calculated based on the statutory income tax rate of 25 % on the assessable income of respective PRC entities during the years ended December 31, 2020, 2021 or 2022 in accordance with relevant PRC enterprise income tax rules and regulations. No provision for PRC corporate income tax has been made for the years ended December 31, 2020, 2021 or 2 0 22 as the Group had no such taxable profit for the years then ended. The reconciliation between the Group’s actual tax charge and the amount that is calculated based on the statutory income tax rate of 25% in the PRC is as follows: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss from operations in the PRC ( 85,788 ) ( 233,382 ) ( 263,291 ) Loss from overseas entities ( 693,437 ) ( 1,071,745 ) ( 531,727 ) Loss before income tax ( 779,225 ) ( 1,305,127 ) ( 795,018 ) Tax expense at PRC enterprise income tax rate of 25% ( 194,806 ) ( 326,282 ) ( 198,755 ) Expenses not deductible for income tax purpose 3,185 13,663 17,849 Super deduction of research and development expenses (i) ( 13,341 ) ( 35,523 ) ( 42,980 ) Tax losses and deductible temporary differences for which no deferred income tax assets were recognized 40,865 114,121 172,349 Effect of income tax in jurisdictions other than the PRC 164,097 235,718 53,574 Income tax expense — 1,697 2,037 (i) According to policies promulgated by the State Tax Bureau of the PRC, certain of the Company's subsidiaries are entitled to tax incentives for research and development expenses at 175 % of tax-deductible research and development expenses in 2020, 2021 and 2022. For the year ended December 31, 2022, the Group’s income tax expense of RMB 2.0 million is due primarily to income tax expense for Connect US, which is treated for income tax purposes as a service provider for Connect HK and earns service fee income on a cost-plus basis. The Group did no t recognize deferred income tax assets for the cumulative tax losses and deductible temporary differences that amounted to approximately RMB 582 million, RMB 1,327 million and RMB 2,203 million as of December 31, 2020, 2021 and 2022, respectively, that can be carried forward against future taxable income. The balance of research and development tax credits for Connect US as of December 31, 2022 is RMB 36.5 million, which can be carried forward against future tax liabilities. As of December 31, 2020, 2021 and 2022, the Group did no t have any significant unrecognized uncertain tax positions. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Net Loss Per Share | 11. Net Loss Per Share Upon approval of shareholders of the Company on March 12, 2021, every 1.74 ordinary shares were consolidated into one ordinary share (the “Share Consolid ation”) (Note 19). To calculate net loss per share, the number of shares used reflects such Share Consolidation retrospectively as of January 1, 2019, in the calculation of the weighted average number of ordinary shares outstanding. Basic net loss per share is calculated by dividing the net loss attributable to owners of the Company by the weighted average number of ordinary shares outstanding. Basic and diluted net losses per share reflecting the effect of the issuance of ordinary shares by the Company are presented as follows. Year Ended December 31, 2020 2021 2022 Net loss attributable to owners of the Company (RMB’000) ( 779,225 ) ( 1,306,824 ) ( 797,055 ) Weighted average number of ordinary shares outstanding (in thousands) 17,090 52,177 55,044 Basic and diluted net loss per share (RMB) ( 45.6 ) ( 25.0 ) ( 14.5 ) Options, preferred shares and Employee Share Purchase Plan ("ESPP") shares are considered potentially dilutive throughout the reporting period. However, since the Group had incurred losses for the years ended December 31, 2020, 2021 and 2022, the potential dilutive shares have an anti-dilutive effect on net loss per share if they are converted to ordinary shares. Thus, diluted net loss per share is equivalent to the basic net loss per share. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment | 12. Property, Plant and Equipment Office Laboratory Leasehold furniture Assets under Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2021 Cost 5,672 1,461 585 1,906 9,624 Accumulated depreciation ( 1,460 ) ( 808 ) ( 417 ) — ( 2,685 ) Net book value 4,212 653 168 1,906 6,939 Year ended December 31, 2021 Opening net book value 4,212 653 168 1,906 6,939 Additions 30,440 793 422 24,121 55,776 Disposals ( 234 ) — ( 14 ) — ( 248 ) Depreciation ( 2,142 ) ( 813 ) ( 175 ) — ( 3,130 ) Transfers — 2,449 — ( 2,449 ) — Closing net book value 32,276 3,082 401 23,578 59,337 As of December 31, 2021 Cost 35,878 4,703 993 23,578 65,152 Accumulated depreciation ( 3,602 ) ( 1,621 ) ( 592 ) — ( 5,815 ) Net book value 32,276 3,082 401 23,578 59,337 Year ended December 31, 2022 Opening net book value 32,276 3,082 401 23,578 59,337 Exchange difference — ( 2 ) 9 — 7 Additions 2,172 456 829 9,528 12,985 Transfers 301 — — ( 301 ) — Disposals ( 3 ) — ( 1 ) — ( 4 ) Depreciation ( 3,315 ) ( 1,018 ) ( 528 ) — ( 4,861 ) Impairment loss* — — — ( 32,805 ) ( 32,805 ) Closing net book value 31,431 2,518 710 — 34,659 As of December 31, 2022 Cost 38,348 5,157 1,830 — 45,335 Accumulated depreciation ( 6,917 ) ( 2,639 ) ( 1,120 ) — ( 10,676 ) Net book value 31,431 2,518 710 — 34,659 * The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Miscellaneous non-current assets [abstract] | |
Other Non-Current Assets | 13. Other Non-Current Assets As of December 31, 2021 2022 RMB’000 RMB’000 Deductible value-added tax (i) 18,045 1,109 Prepayments for purchase of non-current assets 341 408 Others 420 237 18,806 1,754 (i) The RMB 18.0 million of value-added tax receivable as of December 31, 2021 was refunded to the Company during the year ended December 31, 2022. |
Right-of-Use Assets and Leases
Right-of-Use Assets and Leases | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Right-of-Use Assets and Leases | 14. Right-of-Use Assets and Leases Amounts recognized in the consolidated balance sheets was as follows: (a) Right-of-use assets Land use rights Office rent Total RMB’000 RMB’000 RMB’000 Net book amount as of January 1, 2020 — 883 883 Additions — 527 527 Depreciation — ( 481 ) ( 481 ) Net book amount as of December 31, 2020 — 929 929 Additions 22,284 517 22,801 Depreciation ( 297 ) ( 612 ) ( 909 ) Net book amount as of December 31, 2021 21,987 834 22,821 Additions — 3,582 3,582 Depreciation ( 446 ) ( 1,573 ) ( 2,019 ) Exchange difference 1 ( 48 ) ( 47 ) Net book amount as of December 31, 2022 21,542 2,795 24,337 As of December 31, 2022 Cost 22,284 6,189 28,473 Accumulated depreciation ( 742 ) ( 3,394 ) ( 4,136 ) Net Book value 21,542 2,795 24,337 During the year ended December 31, 2021, the addition of land use rights was related to payments to acquire long-term interest in the usage of land in Taicang, Jiangsu Province, PRC as stated in the land use right certificate. During the year ended December 31, 2022, the Group terminated its construction project to build facilities on the land. In April 2023, the Jiangsu Taicang HIDC, and Connect SZ entered into an agreement for the Jiangsu Taicang HIDC to repurchase from Connect SZ the land use rights at the original purchase price and to terminate the Land Use Agreement and the relevant provisions of the Investment Agreement. The procedures related to the cancellation registration of the land use rights are expected to commence during the second quarter of 2023 and the Group expects to receive the original purchase price after the registration of the land use rights has been cancelled as confirmed by Jiangsu Taicang HIDC. (b) Lease liabilities We lease a research, development and administration facility in Taicang, Jiangsu Province, PRC, which expires on April 30, 2023 , and lease an executive and administration office in San Diego, California, which expires in April 2025 . The following tables provide information regarding these leases. As of December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Non-current 309 163 1,704 Current 604 630 1,294 . 913 793 2,998 Amounts recognized in the consolidated statements of loss in addition to the right-of-use asset depreciation expense are as follows: As of December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest expense 42 44 144 Expense relating to short-term leases (included in administrative expenses and research and development expenses) 45 12 — Expense relating to leases of low-value assets that are not shown above as short-term leases (included in administrative expenses and research and development expenses) 30 58 — 117 114 144 The total cash outflow for leases for the years ended December 31, 2020, 2021 and 2022 was RMB 0.5 million, RMB 0.8 million and RMB 1.5 million, respectively. |
Financial Instruments by Catego
Financial Instruments by Category | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments by Category | 15. Financial Instruments by Category Financial assets Financial assets Financial assets at FVOCI at amortized cost Total RMB’000 RMB’000 RMB’000 As of December 31, 2021 Other receivables — 6,423 6,423 Financial assets at fair value through other comprehensive income — — — Cash and cash equivalents — 1,706,880 1,706,880 — 1,713,303 1,713,303 Financial assets Financial assets Financial assets Financial assets at FVOCI at amortized cost at FVTPL Total RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2022 Other receivables — 1,971 — 1,971 Financial assets at fair value through other comprehensive income 576,994 — — 576,994 Cash and cash equivalents — 422,348 127,926 550,274 576,994 424,319 127,926 1,129,239 Financial liabilities at Financial Liabilities amortized cost RMB’000 As of December 31, 2021 Other payables 21,456 Trade payables 81,195 Lease liabilities 793 103,444 Financial liabilities at Financial Liabilities amortized cost RMB’000 As of December 31, 2022 Other payables 9,426 Trade payables 83,138 Lease liabilities 2,998 . 95,562 |
Other Receivables and Prepaymen
Other Receivables and Prepayments | 12 Months Ended |
Dec. 31, 2022 | |
Other Receivables And Prepayments [Abstract] | |
Other Receivables and Prepayments | 16. Other Receivables and Prepayments As of December 31, 2021 2022 RMB’000 RMB’000 Prepayment for clinical trials related services 36,879 18,871 Prepaid expenses (i) 3,953 2,571 Deposits (ii) 4,312 356 Others 2,111 1,615 47,255 23,413 (i) In March 2022, the Group made payments to purchase director and officer liability insurance. Such expenses are amortized over one year . (ii) Deposits held by CRO suppliers are refundable upon the completion of related services. |
Financial Assets at Fair Value
Financial Assets at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Categories of financial assets [abstract] | |
Financial Assets at Fair Value | 17. Financial Assets at Fair Value (a) Financial Assets at Fair Value Through Other Comprehensive Income Financial assets at FVOCI comprise of investments in debt securities where the contractual cash flows are solely principal and interest and the objective of the Group’s business model is achieved by collecting contractual cash flows and selling financial assets. Financial assets at FVOCI consist of investments in the following: December 31, 2022 RMB’000 Non-current assets U.S. Treasury bills 11,739 Listed bonds 54,005 65,744 Current assets U.S. Treasury bills 271,499 Government agency bond 8,365 Listed bonds 52,730 Unlisted debt securities (i) 178,656 511,250 (i) Unlisted debt securities comprise of investments in commercial paper of financial institutions. On disposal of debt investments, any related balance within the FVOCI reserve is reclassified to other (losses)/gains within profit or loss. Maturities of debt investments recorded at FVOCI totaled RMB 195.4 million (USD 28.1 million) during the year ended December 31, 2022. December 31, 2022 RMB’000 Interest income recognized in profit and loss related to debt investments 9,392 Losses recognized in other comprehensive income related to debt investments ( 2,513 ) Financial assets at FVOCI are reflected as Level 1 and 2 instruments, as short-term and long-term investments. As of December 31, 2022, the Group had RMB 511.3 million and RMB 65.7 million of FVOCI short-term investments and FVOCI long-term investments, respectively. The following amounts table presents changes in Level 1 and 2 instruments of short-term and long-term investments for debt investments at FVOCI: Year Ended December 31, 2022 RMB’000 Financial assets at fair value through other comprehensive income Opening balance — Additions 737,494 Settlements (including coupon interest received) ( 195,364 ) Accrued interest 3,333 Discount accreted 6,059 Change in fair value debited to other comprehensive income* ( 2,513 ) Exchange difference 27,985 Closing balance 576,994 * - includes unrealized gains / (losses) recognized in other comprehensive income attributable to balances held at the end of the reporting period. Information about the methods and assumptions used in determining fair value is provided in Note 3. Impairment on financial assets at FVOCI is measured based on expected losses and changes in credit risk and recognized into profit and loss when determined. As of December 31, 2022, no impairment has been recognized on debt investments at FVOCI. All of the financial assets at FVOCI are denominated in USD. (b) Financial Assets at Fair Value Through Profit or Loss Financial assets at FVTPL comprise of investments in wealth management products and investments in money market funds. Investments in wealth management products are reflected as Level 3 instruments, as short-term investments. As of December 31, 2022, the Group had no remaining investments in such products. The following table presents the changes in Level 3 instruments of short-term investments in wealth management products for the years ended December 31, 2020, 2021 and 2022. Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Financial assets at fair value through profit or loss Opening balance 30,632 13,068 — Additions 106,600 114,500 41,000 Settlements ( 124,836 ) ( 128,004 ) ( 41,140 ) Fair value gains recognized in profit or loss (Note 8)* 672 436 140 Closing balance 13,068 — — *Includes unrealized gains recognized in profit or loss attributable to balances held at the end of the reporting period 68 — — The fair value of wealth management products is based on discounted cash flows using their expected returns. The returns on these wealth management products were not guaranteed, hence their contractual cash flows did not qualify solely as payments of principal and interest. Changes in fair value of these financial assets are recorded in other (losses)/gains – net in the consolidated statements of loss. Investments in money market funds are reflected as Level 1 instruments, as cash equivalents. As of December 31, 2022, the Group had RMB 127.9 million of money market investments included in cash equivalents. The following table presents the changes in Level 1 instruments of money market funds included in cash equivalents for the year ended December 31, 2022. Year Ended December 31, 2022 RMB’000 Financial assets at fair value through profit or loss Opening balance — Additions 655,806 Settlements (including coupon interest received, net of fees) ( 536,858 ) Investment income credited to profit or loss 1,711 Exchange difference 7,267 Closing balance 127,926 The carrying amounts of the Group’s other financial assets and liabilities, including cash, other receivables, trade payable and other payables, approximate their fair values. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash and Cash Equivalents | 18. Cash and Cash Equivalents As of December 31, 2021 2022 RMB’000 RMB’000 Cash at bank - USD deposits 1,645,948 353,379 - RMB deposits 57,595 63,856 - Australian Dollar deposit 3,337 5,113 Cash equivalents (i) — 127,926 1,706,880 550,274 (i) Due to their liquidity, investments in money market funds and short-term investments with original maturities of 90 days or less, are classified as cash equivalents. Accordingly, these cash equivalents are recorded at their fair value, with their changes in fair value reflected in profit or loss (see Note 17(b)). Cash at bank located in the PRC earns interest at floating rates based on daily bank deposit rates, while deposits in banks outside the PRC are with interest rate of nil. Cash at banks denominated in RMB are deposited with banks in the PRC. The conversion of these RMB-denominated balances into foreign currencies and the remittance of funds out of China are subject to the rules and regulations of foreign exchange control promulgated by the PRC Government. Cash equivalents denominated in USD are held with banks in the U.S. As of December 31, 2021 and 2022, RMB 1,501.8 million and RMB 377.8 million of cash and cash equivalents were held in banks outside the PRC, respectively. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | |
Share Capital | 19. Share Capital Upon approval of shareholders of the Company on March 12, 2021, every 1.74 ordinary shares with a par value of USD 0.0001 each in the authorized share capital of the Company (including all issued and unissued shares) were consolidated into one share with a par value of USD 0.000174 each. Therefore, the authorized share capital of the Company was changed from USD 50,000 to USD 76,560 . The authorized share capital of the Company as of December 31, 2022 was USD 76,560 . The number of ordinary shares below are presented retrospectively as if such Share Consolidation took place as of January 1, 2019. Number of Ordinary Shares Share Capital Share Premium(i) Total RMB’000 RMB’000 RMB’000 As of January 1, 2020 17,684,770 21 38,123 38,144 Issuance of shares to Co-Founders (iii, Note 22) 282,526 1 3,343 3,344 Issuance of treasury shares 1,686,495 2 — 2 As of December 31, 2020 19,653,791 24 41,466 41,490 Issuance of ordinary shares (i) 12,937,500 14 1,305,805 1,305,819 Conversion from preferred shares to ordinary shares (Note 24) 24,791,804 28 2,743,597 2,743,625 Repurchase of ordinary shares (ii) ( 20,765 ) — — — Issuance of shares to Co-Founders (iii, Note 22) 121,080 — 1,417 1,417 Exercise of stock options — — 2,149 2,149 As of December 31, 2021 57,483,410 66 4,094,434 4,094,500 Issuance of ordinary shares (v) 25,468 — 132 132 Shares surrendered and cancelled (iv) ( 60,540 ) — — — As of December 31, 2022 57,448,338 66 4,094,566 4,094,632 (i) In March 2021, 12,937,500 ADSs (representing 12,937,500 ordinary shares, including the exercise of the option by the underwriters in full to purchase additional ADSs) were offered by the Company in connection with its listing on Nasdaq, and the proceeds received were USD 219.9 million or RMB 1,431.8 million based on the exchange rate as of the date of the IPO. The Company incurred issuance costs of USD 19.3 million in connection with this offering. (ii) In March 2021, at the request of one co-founder, the Company repurchased 20,765 ordinary shares from him for a consideration of RMB 2.5 million (USD 0.4 million) for the payment of employee withholding taxes related to share-based awards, then such shares were cancelled accordingly. (iii) Pursuant to the Company’s shareholder agreement in effect as of the completion of the Series C financing (see Note 22), each of the Company’s founders was entitled to two or more votes to ensure the Co-Founders control the majority of the votes under certain circumstances. (iv) In May 2022, a related party surrendered 60,540 ordinary shares for no consideration. The surrendered shares were cancelled. In relation to the share surrender, the Company did not enter into any agreement or commitment for future consideration or compensation. (v) On November 1, 2022, the 25,468 shares were issued under the 2021 ESPP Plan. |
Treasury Shares
Treasury Shares | 12 Months Ended |
Dec. 31, 2022 | |
Treasury Shares [Abstract] | |
Treasury shares | 20. Treasury Shares Treasury shares were previously held by Connect Union for the purpose of issuing shares under 2019 Stock Incentive Plan in 2019 and 2020. All the Company’s ordinary shares held by Connect Union were surrendered to the Company in September 2021. As of December 31, 2020, 2021 and 2022, there were 2,563,563 , 2,407,091 and 2,407,091 treasury shares, respectively. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of reserves within equity [abstract] | |
Reserves | 21. Reserves (a) Share-based compensation reserves The share-based compensation reserves represent the fair value of unexercised options granted to employees recognized in accordance with the accounting policy adopted for equity-settled share-based payments described in Note 2.16 to the financial statements. (b) Other reserves Other reserves mainly represent the reserve transferred from share-based compensation reserve upon exercise of share options and foreign currency translation reserve described in Note 2.5(c). (c) Statutory reserves In accordance with the PRC regulations and the articles of association of the PRC companies now included in the Group , before annual profit distribution, companies registered in the PRC are required to set aside 10 % of their net profit for the year after offsetting any prior year losses as determined under relevant PRC accounting standards to the statutory surplus reserve fund. When the balance of such reserve reaches 50 % of the entity’s registered capital, any further appropriation is optional. No profit appropriation to the reserve fund was made for those entities for the reporting periods as they were in accumulated loss positions. Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Restricted net assets including paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries was RMB 288.9 million as of December 31, 2021 and RMB 221.5 million as of December 31, 2022. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-Based Compensation | 22. Share-Based Compensation 2019 Stock Incentive Plan The Group adopted the 2019 stock incentive plan ("2019 Plan") and obtained Board’s approval on November 1, 2019, under which the Group may grant various awards such as options, restricted shares or restricted share units to employees, directors, and consultants for services rendered. Pursuant to the plan, a grantee has the right to subscribe for the ordinary shares at a price determined by the Board. The options granted can only vest if the service conditions are met. Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years ; 25 % of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months. Some options are vested in equal monthly installments or annual installments over the entire service period or vested immediately upon the grant date in instances where services had already been performed in their entirety. The grant date of certain grantees occurred after the date they had begun rendering services to satisfy the condition attached to the share option award, the management estimated the grant date fair value in each reporting period for the purpose of recognizing the expense during the period between the service commencement date and the grant date. Once the grant date has been established, the recognized expense is based on the actual grant date fair value of the share option in the period of change. Grantees who leave the Group other than for certain causes will lose their entitlement to the vested options if not exercised within three months of their termination date (or within three months after the IPO kick-off date for certain option holders). 2021 Stock Incentive Plan The Group adopted 2021 Stock Incentive Plan (“2021 Plan”) effective on the day of effectiveness of its IPO. Awards granted under the 2021 Plan may be either stock options, stock appreciation rights (“SARs”), restricted stock units (“RSUs”), restricted stock awards (“RSA”) or dividend equivalent right ("DER”). The maximum aggregate number of ordinary shares which may be issued pursuant to all awards under the 2021 Plan is (1) 6,000,000 ordinary shares, plus (2) any ordinary shares that were, as of the effective date of the 2021 Plan, (i) available for issuance under the 2019 Plan or (ii) subject to outstanding awards under the 2019 Plan that become available for issuance under the 2021 Plan thereafter in accordance with its terms. The number of ordinary shares initially available for issuance will be increased on the first day of each of our fiscal years during the term of the 2021 Plan commencing with the fiscal year beginning January 1, 2021, by an amount equal to the least of (i) 5.0 % of the total number of ordinary shares issued and outstanding on the last day of the immediately preceding fiscal year; or (ii) such lesser number of shares as may be determined by the Company’s board of directors. Our board of directors determined that the increase under the 2021 Plan for the fiscal years beginning January 1, 2022 and 2023, to be 5.0 % and 2.5 %, respectively, of our outstanding shares as determined on December 31, 2021 and 2022, respectively. In no event will more than 60,000,000 shares be issuable upon the exercise of incentive share options (within the meaning of Section 422 of the U.S. Internal Revenue Code) under the 2021 Plan. Pursuant to the plan, a grantee has the right to subscribe for the ordinary shares at a price determined by the Board. The options granted can only vest if the service conditions are met. Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years ; 25 % of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months . Grantees who leave the Group other than for certain causes will lose their entitlement to the vested options if not exercised within three months of their termination date. During the year ended December 31, 2020, the Group granted a total of 1,500,887 options from the 2019 Plan. During the year ended December 31, 2021, the Company granted a total of 2,403,660 options which contain 897,660 options from the 2019 Plan and 1,506,000 options from the 2021 Plan. During the year ended December 31, 2022, the Company granted 2,986,547 options from the 2021 Plan. As of December 31, 2022, the Group has reserved 5,348,217 ordinary shares under the 2021 Plan. 2021 Employee Share Purchase Plan The Group adopted the 2021 Employee Share Purchase Plan (“2021 ESPP”) and began implementation in May 2022. A total of 600,000 ordinary shares were initially reserved for issuance under the 2021 ESPP Plan. On the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031, the number of shares available for issuance under the 2021 ESPP Plan shall be increased by that number of shares equal to the lesser of 1.0 % of the aggregate number of ordinary shares of the Group outstanding on the final day of the immediately preceding calendar year or such smaller number of shares as determined by the Groups board of directors. Our board of directors determined that the increase under the 2021 Plan for the fiscal years beginning January 1, 2022 and 2023, to be 1.0 % and 0.0 %, respectively, of our outstanding shares as determined on December 31, 2021 and 2022, respectively. An offering was made under the 2021 ESPP starting May 1, 2022, for the Section 423 component of the plan with the following key provisions: eligible employees are granted rights to purchase ordinary shares, which can be funded through payroll deductions that cannot exceed 15 % of each employee’s compensation. The 2021 ESPP generally provides for a 24-month offering period, which includes four six-month purchase periods. At the end of each purchase period, eligible employees are permitted to purchase ordinary shares at 85 % of the lower of fair market value at the beginning of the offering period or fair market value at the end of the purchase period. The first offering period began on May 1, 2022. During the year ended December 31, 2022, employees purchased 25,468 shares at a discounted price of $ 0.74 and the Group recorded share-based compensation expense of RMB 0.3 million (USD 39 thousand) with respect to the 2021 ESPP. The options activities under 2019 and 2021 Plans (after the Share Consolidation) for the years ended December 31, 2020, 2021 and 2022 were as follows: Number of options Weighted average Options outstanding as of January 1, 2020 190,762 Granted 1,500,887 USD 6.6 Forfeited (i) ( 25,766 ) USD 0.9 Options outstanding as of December 31, 2020 1,665,883 Granted 2,403,660 USD 13.8 Exercised ( 163,773 ) USD 0.9 Forfeited (i) ( 157,381 ) USD 14.7 Options outstanding as of December 31, 2021 3,748,389 Granted 2,986,547 USD 3.4 Forfeited (i) ( 1,631,309 ) USD 9.6 Options outstanding as of December 31, 2022 5,103,627 Options exercisable as of December 31, 2022 1,329,119 The weighted average remaining contractual life of options outstanding as of December 31, 2020, 2021 and 2022 was 9.3 , 9.2 and 8.7 years, respectively. (i) The options were forfeited when the employment terminated. Fair value of options granted Prior to the completion of the IPO, the Company determined its equity value which was estimated using the hybrid method and adopted the allocation model to determine the fair value of its underlying ordinary shares. After the completion of the IPO, the fair value of the share options is estimated based on the fair market value of the Company’s underlying ordinary shares at the grant date. Based on the fair value of underlying ordinary shares, the Group used the Binomial option-pricing model to determine the fair value of options as of the grant date. Separately, the Group used the Black-Scholes option-pricing model to determine the fair value of ESPP compensation expense calculation as of the grant date. The amounts withheld from employees’ paychecks totaled RMB 0.2 million (USD 23 thousand), which is recorded in Other payables and accruals within Current liabilities. Key assumptions for the options granted for the periods and ESPP compensation are set forth below: Stock Incentive Plan ESPP Year Ended December 31 Year Ended December 31 2020 2021 2022 2022 Weighted average exercise price during the year USD 6.6 USD 13.8 USD 3.44 (i) Grant date share price USD 2.1 ~USD 11.1 USD 4.3 ~USD 23.3 USD 0.75 ~USD 4.91 USD 0.86 ~USD 1.86 Risk-free interest rate 0.8 %~ 1.1 % 1.2 %~ 1.7 % 1.9 %~ 3.4 % 1.5 %~ 4.8 % Expected volatility 61.8 %~ 77.4 % 60.5 %~ 62.2 % 61.4 %~ 62.0 % 51.1 %- 60.2 % Option life 10 years 10 years 10 years 0.5 ~ 2.0 years Expected early exercise multiple 2.2 2.2 2.2 ~ 2.8 N/A Dividend yield Nil Nil Nil Nil Forfeiture rate 9.5 % * 3.0 %- 9.6 % * 3.0 %- 10.8 % 3.0 % Weighted average fair value of options granted during the year USD 4.2 USD 10.6 USD 1.98 USD 0.71 * During the year ended December 31, 2022, the forfeiture rates for executives was 3.0 % and ranged between 7.7 % to 10.8 % for all other employees. (i) Discounted ESPP price for issued shares during the year ended December 31, 2022 was $ 0.74 . The Group adopted the average volatility of the comparable companies as the proxy of the expected volatility of the underlying share. The volatility of each comparable company was based on the historical daily stock prices for a period with length commensurate to the remaining maturity life of the share options. Share-based compensation to Co-Founders On December 20, 2018, pursuant to the shareholders agreement entered into among the Company and all its shareholders in connection with its Series B financing, up to 702,278 and 1,140,474 ordinary shares (before Share Consolidation) will be issued to the Co-Founders and Connect Union, respectively, for no consideration, contingent on achieving of various R&D milestones as non-market performance conditions. Under such agreement, the ordinary shares may also be issued in a lump sum immediately after the closing of new financing that meets several requirements including, among others, the pre-money valuation of the Group exceeding USD 600,000,000 (“Financing Condition”). Such shares to be issued to Connect Union were reserved for future issuance of options. Upon achievement of certain R&D milestones, 351,140 ordinary shares (before Share Consolidation) were vested and yet to be issued to the Co-Founders as of December 31, 2019. In January 2020, another 140,456 ordinary shares (before Share Consolidation) were vested to the Co-Founders. Accordingly, the Company issued 491,596 ordinary shares (before Share Consolidation) to the Co-Founders and 798,330 ordinary shares (before Share Consolidation) to Connect Union, respectively, for no consideration in April 2020. The Company recognized the related share-based compensation expenses in the amounts of RMB 2.7 million and RMB 1.2 million for the years ended December 31, 2019 and 2020, respectively. Unless otherwise waived by the Company and the investors party to the shareholders agreement, 210,682 ordinary shares (before Share Consolidation) are potentially issuable to the Co-Founders and 342,144 ordinary shares (before Share Consolidation) are potentially issuable to Connect Union upon achievement of the Financing Condition. Pursuant to the shareholders agreement entered into in connection with the Company’s Series C financing in August and December 2020, upon the issuance of the remaining ordinary shares issuable upon achievement of the Financing Condition (i.e. 210,682 ordinary shares (before Share Consolidation) to be issued to the Co-Founders and 342,144 ordinary shares (before Share Consolidation) to be issued to Connect Union), the Company will be obligated to issue additional Series C preferred shares at par value to each of the Series C shareholders so that the shareholdings of the Series C preferred shares obtained by such Series C shareholders will not be diluted. As of December 31, 2020, the Company has not yet issued the above ordinary shares to Co-Founders and Connect Union, so no additional Series C preferred shares are issued. Pursuant to the shareholders agreement, upon achievement of certain R&D milestones, 210,682 ordinary shares were issued to the Co-Founders for the year ended December 31, 2021. After the Share Consolidation, these have become 121,080 ordinary shares. 80,457 Series C preferred shares. After the Share Consolidation, these have become 46,232 preferred shares. Upon completion of the IPO, such preferred shares were converted to ordinary shares on a one-for-one basis. The Group determined its equity value which was estimated using the hybrid method and adopted the allocation model to determine the fair value of this share-based payment as USD 0.9 per share before the Share Consolidation (USD 1.57 after the Share Consolidation) on the grant date. Key assumptions included risk-free interest rate of 2.5 %, expected volatility of 60.0 %, dividend yield of nil and were based on the management’s best estimates. Share-based compensation to additional Series C preferred shareholder In August 2020, the Company entered into a Series C preferred share purchase agreement with certain investors to issue 18,186,643 shares ( 10,452,094 after the Share Consolidation) of Series C preferred shares for a cash consideration of USD 115.0 million. Subsequent to the completion of the Series C financing in August 2020, the Company negotiated with another investor for an additional round of Series C financing. On December 1, 2020, the Company issued 3,162,894 ( 1,817,755 after the Share Consolidation) additional Series C preferred shares to such investor for a cash consideration of USD 20.0 million with the same subscription price and similar terms as Series C preferred shares issued in August 2020 (“Additional Series C Preferred Shares”). According to the relevant guidance under IFRS 2, when the Group receives identifiable consideration that is less than the fair value of the equity instruments granted or liability incurred, the Group measures the identifiable goods or services received. The Group shall measure the unidentifiable goods or services received (or to be received) as the difference between the fair value of the share-based payment and the fair value of any identifiable goods or services received (or to be received) on the grant date. Therefore, the Group recognized the difference between the cash consideration received from and the fair value of the Additional Series C Preferred Shares on the issuance date as a share-based compensation in the amount of approximately RMB 19.7 million for the year ended December 31, 2020. Share-based compensation expenses included in the consolidated statements of loss for the years ended December 31, 2020, 2021 and 2022 is as follows: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Research and development expenses (Note 6) 3,523 26,532 20,226 Administrative expenses (Note 5(ii), Note 6) 21,667 31,331 25,372 25,190 57,863 45,598 Upon completion of the IPO, all issued and outstanding Additional Series C Preferred Shares were converted to ordinary shares on a one-for-one basis. |
Other Payables and Accruals
Other Payables and Accruals | 12 Months Ended |
Dec. 31, 2022 | |
Other Payables and Accruals [Abstract] | |
Other Payables and Accruals | 23. Other Payables and Accruals As of December 31, 2021 2022 RMB’000 RMB’000 Construction payables 16,576 1,424 Payroll, welfare and bonus payables 11,384 14,959 Accrued professional service fee 2,318 5,696 Others 2,562 2,306 32,840 24,385 |
Financial Instruments with Pref
Financial Instruments with Preferred Rights | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments with Preferred Rights | 24. Financial Instruments with Preferred Rights The Group has completed a series of financings by issuing preferred shares with the following details: Subscription Number of consideration Date of subscription Round preferred shares RMB’000 March 3, 2016 Series Pre-A 3,109,000 33,110 January 3, 2017 Series A 8,471,200 137,868 December 20, 2018 Series B 10,127,579 379,148 August 21, 2020 / December 1, 2020 Series C 21,349,537 923,247 43,057,316 1,473,373 After the Share Consolidation, the above number of preferred shares were changed to 24,745,572 and together with additional 46,232 preferred shares as disclosed in the Note 22, the Company’s issued and outstanding preferred shares were 24,791,804 prior to March 19, 2021. Movements of financial instruments with preferred rights during the years ended December 31, 2020 and 2021 was as follows: Fair value RMB’000 As of January 1, 2020 643,008 Issuance of Series C Preferred Shares 923,247 Change in fair value recognized in profit or loss 579,286 Share-based compensation to additional Series C preferred shareholder 19,655 Change in fair value due to foreign currency translation recognized in other comprehensive income ( 93,688 ) As of December 31, 2020 2,071,508 Change in fair value recognized in profit or loss 674,269 Change in fair value due to foreign currency translation recognized in other comprehensive income ( 2,152 ) Converted to ordinary shares upon IPO ( 2,743,625 ) As of December 31, 2021 — The Group used the IPO price (USD 17 ) to determine the fair value of the financial instruments with preferred rights on March 19, 2021. Upon completion of the IPO in March 2021, such preferred shares were converted to ordinary share on a one -for-one basis. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash Flow Information [Abstract] | |
Cash Flow Information | 25. Cash Flow Information (a) Cash used in operations Year Ended December 31, Notes 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net loss before income tax ( 779,225 ) ( 1,305,127 ) ( 795,018 ) Adjustments for: —Interest for lease liabilities 9 42 44 144 —Investment income from investments in wealth management products 17(b) ( 672 ) ( 436 ) ( 140 ) —Interest income from investments at fair value through other comprehensive income 17(a) — — ( 9,392 ) —Amortization of intangible assets 7 43 60 —Depreciation of property, plant and equipment 12 955 3,130 4,861 —Depreciation of rights-of-use assets 14 481 909 2,019 —Net impairment losses 12 — — 32,805 —Share-based compensation expenses 22 25,190 57,863 45,598 —Net foreign exchange differences 8 6,772 3,309 ( 9,629 ) —Fair value changes of financial instruments with preferred rights 24 579,286 674,269 — —Issuance cost of financial instruments with preferred rights 9 2,851 — — —Loss on disposal of property, plant and equipment — 250 4 Changes in working capital —Other receivables and prepayments ( 9,350 ) ( 16,116 ) 23,084 —Other non-current assets ( 3,906 ) ( 8,206 ) 17,052 —Other payables and accruals 8,558 ( 11,459 ) 6,315 —Trade payables 1,850 56,601 2,572 Net cash used in operations ( 167,161 ) ( 544,926 ) ( 679,665 ) Supplemental Cash Flow Information: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest received 1,381 622 2,894 Income taxes paid — — 3,221 (b) Non-cash investing and financing activities Year Ended December 31, Notes 2020 2021 2022 RMB’000 RMB’000 RMB’000 Construction payables — 16,576 1,424 Fair value changes of financial instruments with preferred rights 24 579,286 674,269 — Share-based compensation to additional Series C preferred shareholder 22 19,655 — — 598,941 690,845 1,424 (c) Reconciliation of liabilities arising from financing activities Financial instruments with preferred rights Lease liability RMB’000 RMB’000 At January 1, 2020 643,008 882 Cash flows 923,247 ( 538 ) New leases 527 Interest expenses — 42 Differences of foreign currency translation ( 93,688 ) — Changes in fair value 579,286 — Share-based compensation to additional Series C preferred shareholder 19,655 — At December 31, 2020 2,071,508 913 Cash flows ( 805 ) New leases — 641 Interest expenses — 44 Differences of foreign currency translation ( 2,152 ) — Changes in fair value 674,269 — Conversion to ordinary shares ( 2,743,625 ) — At December 31, 2021 — 793 Cash flows — ( 1,515 ) New leases — 3,576 Interest expenses — 144 At December 31, 2022 — 2,998 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Capital commitments [abstract] | |
Commitments | 26. Commitments Capital commitments Year Ended December 31, 2021 2022 RMB’000 RMB’000 Equipment and intangible assets - Contracted but not provided for 146,878 — As of December 31, 2021, we had capital commitments of approximately RMB 146.9 million (USD 23.0 million), primarily in connection with the constru ction of a campus in Taicang in the PRC. During the year ended December 31, 2022, the Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million (see Note 12). As of December 31, 2022, we have no additional capital commitments. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
Related Party Transactions | 27. Related Party Transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control or exercise significant influence over the other party. Parties are also considered to be related if they are subject to common control. Members of key management of the Group and their close family members are also considered as related parties. Names of related parties Nature of relationship Hangzhou Simo Company Limited Entity controlled by a director of the Company Frontage Laboratories (Suzhou) Company Limited Entity controlled by a director of the Company Shanghai Tigermed Consulting Company Limited Entity controlled by a director of the Company Hangzhou Tigermed Consulting Company Limited Entity controlled by a director of the Company Beijing Medical Development (Suzhou) Company Limited Entity controlled by a director of the Company As the former director Xiaoping Ye resigned on February 2, 2021, the above companies were no longer considered as related parties for the year ended December 31, 2021 or 2022. In addition to other related party transactions and balances disclosed elsewhere in this financial information, the following is a summary of significant transactions and balances with related parties during the years ended December 31, 2020, 2021 and 2022 and at December 31, 2021 and 2022. (a) Interests in subsidiaries of the Company are set out in Note 1.1. (b) Significant transactions with related parties Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Purchase of clinical trials related services Hangzhou Simo Company Limited 5,948 — — Frontage Laboratories (Suzhou) Company Limited 2,157 — — Hangzhou Tigermed Consulting Company Limited 1,069 — — Beijing Medical Development (Suzhou) Company Limited 301 — — Shanghai Tigermed Consulting Company Limited 34 — — (c) Balances with related parties The Group had no balances with related parties at December 31, 2021 or December 31, 2022. (d) Key management personnel compensation Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wages, salaries and bonuses 8,013 18,100 18,254 Share-based compensation expenses 1,148 28,266 18,293 Contributions to defined benefit plan (i) 971 — — Welfare, housing funds and other 180 308 487 10,312 46,674 37,034 (i) The defined benefit plan was established in 2018 for one founder and subsequently terminated in 2020. The aggregate value of the benefits under this plan was fully funded and rolled over into an individual retirement account for the benefit of the founder following termination. The Group will have no further obligations with respect to such plan and is no longer subject to actuarial risk and investment risk. The benefit obligation was determined using certain assumptions, including life annuity factor and specified interest rate, which were published by the U.S. Internal Revenue Service. (e) Shares repurchase from key management personnel I n March 2021, the Group repurchased 20,765 ordinary shares from one of the co-founders (see Note 19). (f) Share surrender from key management personnel In May 2022, a related party surrendered 60,540 ordinary shares for no consideration. The surrendered shares were cancelled. In relation to the share surrender, the Group did not enter into any agreement or commitment for future consideration or compensation (see Note 19). |
Events After the Reporting Peri
Events After the Reporting Period | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events After the Reporting Period | 28. Events After the Reporting Period In addition to those disclosed elsewhere in these financial statements, the following events occurring after the reporting periods are noted. From January to April 1, 2023, the Group granted 1,607,787 ordinary share options to its employees and directors with service based vesting conditions and weighted average exercise price of USD 1.26 . In April 2023, the Jiangsu Taicang HIDC, and Connect SZ entered into an agreement for the Jiangsu Taicang HIDC to repurchase from Connect SZ the land use rights at the original purchase price and to terminate the Land Use Agreement and the relevant provisions of the Investment Agreement. The procedures related to the cancellation registration of the land use rights are expected to commence during the second quarter of 2023 and the Group expects to receive the original purchase price after the registration of the land use rights has been cancelled as confirmed by Jiangsu Taicang HIDC. As of the date of this report, the Group is still assessing the financial impact of this agreement. On March 10, 2023, the FDIC Federal Deposit Insurance Corporation (“FDIC”) closed Silicon Valley Bank, Santa Clara, California, and transferred all of the bank’s assets to a newly formed bank named Silicon Valley Bank, N.A., (“SVB”). On March 26, 2023, First-Citizens Bank & Trust Company, Raleigh, North Carolina ("First Citizens") purchased all deposits and loans of SVB, and depositors of SVB became depositors of First Citizens. The Company's cash balance at First Citizens as of the date of this report represents an insignificant portion of its total cash, cash equivalents, and investments balance. The closure of Silicon Valley Bank did not and is not expected to impair the Company’s ability to meet its payroll, supplier and other obligations. The Company is currently evaluating new bank accounts at other global banks to further diversify its cash holdings and minimize impact from any possible similar events in the future. |
Restricted Net Assets and Paren
Restricted Net Assets and Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets And Parent Company Condensed Financial Information [Abstract] | |
Restricted Net Assets and Parent Company Only Condensed Financial Information | 29. Restricted net Assets and Parent Company only Condensed Financial Information The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s subsidiaries in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriation of 10 % of net after-tax profits to be set aside prior to payment of dividends as statutory surplus fund, unless such reserve fund reaches 50 % of the entity’s registered capital, the Group’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The Company performs a test on the restricted net assets of its consolidated subsidiaries (the “Restricted Net Assets”) in accordance with Securities and Exchange Commission Regulation S-X Section 4-08 (e) (3) “General Notes to Financial Statements” and concluded that the condensed financial information for the parent company is required to be presented as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. (a) Condensed balance sheets As of December 31, 2021 2022 2022 RMB’000 RMB’000 USD’000 ASSETS Non-current assets Interest in a subsidiary 1,177,380 2,004,960 287,879 Financial assets at fair value through other comprehensive income — 65,744 9,440 Total non-current assets 1,177,380 2,070,704 297,319 Current assets Cash and cash equivalents 1,464,637 334,106 47,972 Financial assets at fair value through other comprehensive income — 511,250 73,407 Other receivables 86,352 90,197 12,951 Other current assets — 2,571 369 Total current assets 1,550,989 938,124 134,699 Total assets 2,728,369 3,008,828 432,018 LIABILITIES Current liabilities Trade payables 49 — — Other payables and accruals 34,190 51,051 7,330 Total current liabilities 34,239 51,051 7,330 Total liabilities 34,239 51,051 7,330 Net assets 2,694,130 2,957,777 424,688 SHAREHOLDERS’ EQUITY Share capital 66 66 9 Share premium 4,094,434 4,094,566 587,911 Treasury shares ( 1,164 ) ( 1,164 ) ( 167 ) Other reserves ( 10,359 ) 282,789 40,605 Accumulated losses ( 1,388,847 ) ( 1,418,480 ) ( 203,670 ) Total shareholders’ equity 2,694,130 2,957,777 424,688 (b) Condensed statements of loss Year Ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 USD’000 Administrative expenses ( 29,540 ) ( 43,710 ) ( 41,694 ) ( 5,987 ) Other gain - net — — 2,669 383 Operating loss ( 29,540 ) ( 43,710 ) ( 39,025 ) ( 5,604 ) Finance (costs)/income - net ( 2,758 ) — 9,392 1,349 Fair value loss of financial instruments with preferred rights ( 579,286 ) ( 674,269 ) — — Net loss before income tax ( 611,584 ) ( 717,979 ) ( 29,633 ) ( 4,255 ) Income tax expense — — — — Net loss for the year ( 611,584 ) ( 717,979 ) ( 29,633 ) ( 4,255 ) (c) Condensed statements of cash flows Year Ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 USD’000 Net cash used in operating activities ( 4,766 ) ( 31,025 ) ( 22,500 ) ( 3,231 ) Net cash used in investing activities ( 204,170 ) ( 672,529 ) ( 1,244,278 ) ( 178,657 ) Net cash generated from financing activities 934,284 1,319,418 964 138 Net increase/(decrease) in cash and cash equivalents 725,348 615,864 ( 1,265,814 ) ( 181,750 ) Cash and cash equivalents at the beginning of year 213,253 885,611 1,464,637 210,297 Effects of exchange rate changes on cash and cash equivalents ( 52,990 ) ( 36,838 ) 135,283 19,425 Cash and cash equivalents at end of year 885,611 1,464,637 334,106 47,972 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Basis of preparation | 2.1 Basis of preparation The Group’s consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The Group adopted and transitioned to IFRS issued by IASB on January 1, 2018. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and financial instruments with preferred rights. In preparing its consolidated financial statements prepared under IFRS, the Group early adopted IFRS 9 Financial Instruments (“IFRS 9”) and IFRS 16 Leases (“IFRS 16”) on January 1, 2018. The Group has applied the following standards and amendments for the first time for our annual reporting period commencing January 1, 2022, which did not have any material impact on the consolidated financial statements: Amendments to IFRS 3, "Business Combinations" - acquisition method. Amendments to IAS 16, "Property, Plant and Equipment" - measurement and depreciation for property, plant and equipment. Amendments to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets" - accounting for provisions and contingent assets and liabilities. Annual improvements on IFRS 1, "First-time Adoption of IFRS", IFRS 9, "Financial Instruments", IAS 41, "Agriculture" - adoption of IFRS procedures, derecognition of financial liabilities, and measurement of biological assets, respectively. General improvements on IFRS 16, "Leases" - single lessee accounting model. Amendments to IFRS 16, "COVID-19-Related Rent Concessions" - exemption from assessing COVID-19-related rent concessions. Amendments to IAS 37, "Onerous Contracts — Cost of Fulfilling a Contract" - evaluation of the costs of fulfilling a contract in onerous contracts. The consolidated financial statements for the years ended December 31, 2020, 2021 and 2022 were authorized for issue by the Company’s board of directors (the “Board”) on April 11, 2023. Liquidity Since inception, the Group has incu rred accumulated losses of RMB 3,175.2 million (USD 455.9 million). For the year ended December 31, 2022, the Group had net operating loss of RMB 805.6 million (USD 115.7 million) and net operating cash outflow of RMB 679.7 million (USD 97.6 million). The principal sources of funding have historically been cash contributions from equity holders. The cumulative contributions up through December 31, 2022 approximated US D 440.1 million, among which included USD 219.9 million of proceeds from issuance of ordinary shares in connection with the IPO or RMB 1,431.8 million based on the exchange rate as of the date of the IPO. As of December 31, 2022, the Group had net assets of RMB 1,096.9 million (USD 157.5 million), including cash, cash equivalents, and short-term investments at fair value through other comprehensive income of RMB 1,061.5 million (USD 152.4 million) and long-term investments at fair value through other comprehensive income of RMB 65.7 million (USD 9.4 million). Taking this into consideration, the Group believes it will have sufficient available financial resources to meet its obligations and working capital requirements for at least in the next twelve months from the date of issuance of these financial statements. Accordingly, the Group considers that it is appropriate to prepare the consolidated financial information on a going concern basis. Impact of COVID-19 In December 2019, a novel strain of coronavirus was reported in Wuhan, China and on March 11, 2020 the WHO declared COVID-19 a pandemic. The COVID-19 pandemic has resulted in a widespread health crisis and numerous disease control measures being taken to limit its spread. As the pandemic continues its impact throughout the world, the healthcare systems of the various countries in which we are conducting ongoing clinical trials of CBP-201 and CBP-307 have and may continue to experience disruption. In 2020, enrollment in our Phase 2 clinical trial of CBP-307 for patients with Chron's Disease ("CD") in the PRC was prematurely terminated due to challenges in recruitment caused by the COVID-19 pandemic. In 2021, enrollment in one phase 1 clinical trial of CBP-307 and the phase 1 clinical trial of CBP-174 in Australia were also impacted due to the COVID-19 pandemic. In 2022, our Phase 2 clinical trial of CBP-201 in patients with Chronic Rhinosinusitis with Nasal Polyps was early terminated in part due to the COVID-19 pandemic. |
New and amended standards and interpretations not yet adopted by the Company | 2.2 New and amended standards and interpretations not yet adopted by the Group The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective in the consolidated financial statements. Effective for annual periods beginning on or after Narrow scope amendments to IAS 8 for accounting policies, changes in estimates and errors January 1, 2023 Amendments to IAS 12 for deferred tax related to assets and liabilities arising from a single transaction January 1, 2023 Amendments to IAS 1 for presentation of financial statements’ classification of liabilities January 1, 2024 Amendments to IAS 1 for disclosures of accounting policies January 1, 2023 Application of IFRS 17 for accounting of insurance contracts January 1, 2023 The Group expects to adopt these standards, updates and interpretations when they become mandatory. These standards are not expected to have a material impact on disclosures or amounts reported in the Group’s consolidated financial statements in the period of initial application and future reporting periods. |
Principles of consolidation | 2.3 Principles of consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intra-group transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. |
Separate financial statements | 2.4 Separate financial statements Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill. |
Foreign currency translation | 2.5 Foreign currency translation (a) Functional and presentation currency The consolidated financial statements of the Group are presented in RMB as the historical records for its entities were set-up for consolidations in RMB. The functional currency of the Company is USD. Subsidiaries have functional currencies in USD, RMB and Australian dollars. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Since the Group has no borrowings, all foreign exchange gains or losses are presented in the consolidated statements of loss on a net basis within other (losses)/gains-net. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income. (c) Group companies The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; • income and expenses for each statement of loss and comprehensive income/(loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and • all resulting currency translation differences are recognized in other comprehensive income/loss. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. (d) Convenience translation Translations of the consolidated balance sheet, the consolidated statement of loss, consolidated statement of comprehensive loss and consolidated statement of cash flows from RMB into USD as of and for the year ended December 31, 2022 are solely for the convenience of the readers and calculated at the rate of USD 1.00=RMB 6.9646 , representing the exchange rate as of December 31, 2022 set forth in the China Foreign Exchange Trade System. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate, or at any other rate, on December 31, 2022. |
Property, plant and equipment | 2.6 Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The Group’s assets under construction represents buildings and equipment under construction and pending installation, and is stated at cost less accumulated impairment losses, if any. Costs include construction and acquisition costs. No provision for depreciation is made on assets under construction until such time as the assets are completed and ready for its intended use. Once the asset becomes available for use, it is transferred to the appropriate category of assets. Depreciation is calculated using the straight-line method to allocate the cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements, the shorter lease term as follows: Assets Useful life Laboratory equipment 5 - 10 years Leasehold improvements Shorter of lease term or 5 years Office equipment and furniture 3 - 5 years The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized within other gains/(losses)—net in the statements of loss. |
Intangible assets | 2.7 Intangible assets Software Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring the specific software into usage. These costs are amortized using the straight-line method over their estimated useful lives of approximately 10 years . Costs associated with maintaining software programs are recognized as expense as incurred. |
Impairment of non-financial assets | 2.8 Impairment of non-financial assets Non-financial assets other than goodwill and intangible assets that have an indefinite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
Investments and other financial assets | 2.9 Investments and other financial assets (a) Classification The Group classifies its financial assets in the following measurement categories: • those to be measured subsequently at fair value (either through other comprehensive income (“OCI”) or through profit or loss), and • those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI (“FVOCI”). The Group reclassifies debt investments when and only when its business model for managing those assets changes. (b) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. (c) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial asset carried at FVTPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. (i) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: • Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statements of loss. • FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as a separate line item in the statements of loss. • FVTPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in profit or loss and presented net within other gains/(losses) in the period in which it arises. (ii) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognized in other gains/(losses) in the statements of loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. There were no equity investments during the reporting periods. (d) Impairment The Group assesses on a forward-looking basis the expected credit loss associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk refer to Note 3.1(b) for further details. |
Cash and cash equivalents | 2.10 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Share capital | 2.11 Share capital Ordinary shares are classified as equity. Mandatorily redeemable preferred shares are classified as liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the owners of the Group as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the Group. Shares previously held by Connect Union, which was established for the purpose of holding shares for the share incentive plans, are disclosed as treasury shares and deducted from contributed equity. |
Trade and other payables | 2.12 Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. |
Financial instruments with preferred rights | 2.13 Financial instruments with preferred rights Financial instruments with preferred rights are compound instruments with discretionary dividend right. The Group elected to designate the entire hybrid contracts that include host contract and embedded derivatives as financial liabilities at fair value through profit or loss considering the fact that the instruments also have contingent settlement provisions. They are initially recognized at fair value. Any directly attributable transaction costs are expensed in the consolidated statements of loss. Subsequent to initial recognition, the amount of change in the fair value of the financial instruments with preferred rights that is attributable to changes in the credit risk of that liability shall be presented in OCI with the remaining changes in fair value recognized as “fair value loss of financial instruments with preferred rights” in profit or loss. Dividends on financial instruments with preferred rights classified as financial liabilities are normally included in financial costs. On March 19, 2021, upon completion of the IPO, all issued and outstanding preferred shares were converted to ordinary shares on a one -for-one basis. |
Current and deferred income tax | 2.14 Current and deferred income tax The income tax expense or credit for the period is the tax payable on the taxable income of current period based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. (a) Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. (b) Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Investment allowances and similar tax incentives Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in relation to qualifying expenditure (e.g. the research and development tax incentive or other investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for unclaimed tax credits that are carried forward as deferred tax assets. |
Employee benefits | 2.15 Employee benefits (a) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in other payables and accruals in the balance sheet. (b) Defined benefit plans The liability or asset recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service costs. (c) Defined contribution plans For defined contribution plans, including those under Section 401(k) of the U.S. Internal Revenue Code, the Group pays contributions to publicly administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. The subsidiaries of the Group incorporated in the PRC contribute based on a certain percentage of the salaries of their employees to a defined contribution retirement benefit plan organized by relevant government authorities in the PRC on a monthly basis. The government authorities undertake to assume the retirement benefit obligations payable to all existing and further retired employees under these plans and the Group has no further obligation for post-retirement benefits beyond the contributions made. Contributions to these plans are expensed as incurred. Assets of the plans are held and managed by government authorities and are separate from those of the Group. (d) Housing funds and medical insurance The PRC employees of the Group are entitled to participate in various government-supervised housing funds and medical insurance. The Group contributes on a monthly basis to these funds based on a certain percentage of the salaries of the employees, subject to certain ceilings. The Group’s liability in respect of these funds is limited to the contribution payable in each period and recognized as employee benefit expense when they are due. |
Share-based compensation | 2.16 Share-based compensation The Group operates an equity-settled share-based compensation plan, under which the Group receives services from employees, directors and consultants. The consultants’ work for the Group is under the Group’s direction in the same way as employees and the services rendered by the consultants are similar to those rendered by the Group’s employees. The fair value of options granted under the share incentive plans is recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted: • including any market performance conditions (e.g. the entity’s share price); • excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales growth targets and remaining an employee of the entity over a specified time period); and • including the impact of any non-vesting conditions (e.g. the requirement for employees to save or hold shares for a specific period of time). The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. The Group recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. |
Research and development expenses | 2.17 Research and development expenses The Group incurs costs and efforts on research and development activities. Research expenditures are recorded as an expense in the period the expenditure is incurred. Elements of research and development expenses primarily include (1) expenses related to preclinical testing of the Group’s technologies under development and clinical trials such as payments to Contract Research Organizations ("CRO") investigators and clinical trial sites that conduct the clinical studies; (2) consultant service related to the design of clinical trials and data analysis, (3) payroll and other related expenses of personnel engaged in research and development activities, (4) expenses to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, and (5) other research and development expenses. The Group estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical and clinical studies and research services on its behalf. The Group estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Group will adjust the accrual accordingly. Payments made in advance for the related services are recorded as prepayments in the consolidated balance sheets until the services are rendered. Development costs are recognized as assets if they can be directly attributable to a newly developed service or product and all the following criteria are met or exist: • the technical feasibility to complete the development project so that it will be available for use or sale; • the intention to complete the development project to use or sell the product; • the ability to use or sell the product; • the manner in which the development project will generate probable future economic benefits for the Group; • the availability of adequate technical, financial and other resources to complete the development project and use or sell the product; and • the expenditure attributable to the asset during its development can be reliably measured. Research and development expenses are charged to expense as incurred for all periods presented because they have not met all of the criteria stated above. |
Administrative expenses | 2.18 Administrative expenses Administrative expenses primarily include payroll and related expenses for employees involved in general corporate functions including finance, legal and human resources, rental and depreciation expenses related to facilities and equipment used by these functions, professional service expenses and other general corporate related expenses. |
Interest income | 2.19 Interest income Interest income from financial assets at FVTPL is included in the net fair value gains/(losses) on these assets, see Note 8. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). Interest income is presented as finance income where it is earned from financial assets that are held for cash management purposes. |
Government grants | 2.20 Government grants Grants from the government are recognized at their fair value when there is a reasonable assurance that the grant will be received and the Group is expected to comply with all required conditions. Government grants received in advance of costs being incurred are deferred until the associated costs are recognized. Grants that compensate the Group for the cost of an asset initially are presented as deferred income and are recognized as income in consolidated statements of loss on a straight-line basis over the useful life of the associated asset. |
Right-of-use Assets and Leases | 2.21 Right-of-use Assets and Leases Right-of-use assets comprise of land use rights and office leases. All land in the PRC is owned by the mainland PRC government. The PRC government may sell land use rights for a specified period of time. The purchase price of land use rights represents lease prepayments to the PRC government and is recorded as right-of-use assets on the balance sheet. The right-of-use assets are amortized over the remaining lease term. In 2021, the Group acquired a land use right in Taicang, Suzhou, China from the PRC government. In April 2023, the Jiangsu Taicang High-tech Industrial Development Zone Administrative Commission, or Jiangsu Taicang HIDC, and Connect SZ entered into an agreement for the Jiangsu Taicang HIDC to repurchase from Connect SZ the land use rights at the original purchase price and to terminate the Land Use Agreement and the relevant provisions of the Investment Agreement. The procedures related to the cancellation registration of the land use rights are expected to commence during the second quarter of 2023 and the Group expects to receive the original purchase price after the registration of the land use rights has been cancelled as confirmed by Jiangsu Taicang HIDC. The Group leases offices and the rental contracts are typically made for fixed periods of approximately 2 to 4 years. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component. Lease terms are negotiated on an individual basis. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments), less any lease incentives receivable; • variable lease payment that are based on an index or a rate, initially measured using the index or rate as of the commencement date; • amounts expected to be payable by the Group under residual value guarantees; • the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • any lease payments made at or before the commencement date less any lease incentives received; • any initial direct costs; and • restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a purchase option. |
Segment information | 2.22 Segment information Identification of segments is based on internal reporting to the chief operating decision maker (“CODM”). The CODM for the Group are the Co-Founders of the Group. The Group does not divide its operations into different segments and the CODM operates and manages the Group’s entire operations as one segment, which is consistent with the Group’s internal organization and reporting system. The Group does not have any revenue and substantially all non-current assets outside of the country of domicile are located in the PRC. |
Net loss per share | 2.23 Net loss per share (a) Basic net loss per share Basic loss per share is calculated by dividing: • the loss attributable to owners of the Group, excluding any costs of servicing equity other than ordinary shares; • by the weighted average number of ordinary shares outstanding during the financial year and excluding treasury shares (b) Diluted net loss per share Diluted loss per share adjusts the figures used in the determination of basic loss per share to take into account: • the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. |
General Information, Reorgani_2
General Information, Reorganization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Abstract] | |
Summary of Direct or Indirect Interests in Principal Subsidiaries | As of December 31, 2022, the Company had direct or indirect interests in the following principal subsidiaries: Company name Principal activities Place and date of incorporation Attributable equity interest to the Group Directly Held: Connect Biopharma HongKong Limited (“Connect HK”) Investment holding Hong Kong / December 1, 2015 100 % Indirectly held: Connect Biopharm LLC (“Connect US”) Pharmaceutical R&D San Diego, United States of America / January 24, 2012 100 % Connect Biopharma Australia PTY LTD (“Connect AU”) Pharmaceutical R&D Prahran, Australia / July 18, 2014 100 % Suzhou Connect Biopharma Co., Ltd. (“Connect SZ”) Pharmaceutical R&D Suzhou, PRC / May 2, 2012 100 % Connect Biopharma (Shanghai) Co., Ltd Pharmaceutical R&D Shanghai, PRC / October 23, 2015 100 % Connect Biopharma (Beijing) Co., Ltd Pharmaceutical R&D Beijing, PRC / July 9, 2019 100 % Connect Biopharma (Shenzhen) Co., Ltd Pharmaceutical R&D Shenzhen, PRC / November 15, 2021 100 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Summary of property, plant and equipment useful life | Depreciation is calculated using the straight-line method to allocate the cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements, the shorter lease term as follows: Assets Useful life Laboratory equipment 5 - 10 years Leasehold improvements Shorter of lease term or 5 years Office equipment and furniture 3 - 5 years |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary of Exposure to Foreign Currency Risk | The Group’s exposure to foreign currency risk at the end of the reporting periods, expressed in RMB, was as follows: As of December 31, 2021 2022 RMB’000 RMB’000 Cash and cash equivalents 150,640 113,583 |
Summary of Aggregate Net Foreign Exchange (Losses)/Gains Recognized in Profit or Loss | The aggregate net foreign exchange (losses)/gains recognized in profit or loss were: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net foreign exchange (losses)/gains included in other (losses)/gains—net ( 6,772 ) ( 3,309 ) 9,629 |
Summary of Financial Liabilities into Maturity Groupings Based on Remaining Period to Contractual Maturity Date | The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period at each year-end date to the contractual maturity date . The amounts disclosed in the table are the contractual undiscounted cash flows. As of December 31, 2021 Between Between More Less Than 1 and 2 and Than 1 Year 2 Years 5 Years 5 Years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Trade payables 81,195 — — — 81,195 Other payables 21,456 — — — 21,456 Lease liabilities 653 186 — — 839 Total 103,304 186 — — 103,490 As of December 31, 2022 Between Between More Less Than 1 and 2 and Than 1 Year 2 Years 5 Years 5 Years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Trade payables 83,138 — — — 83,138 Other payables 9,426 — — — 9,426 Lease liabilities 1,570 1,412 237 — 3,219 Total 94,134 1,412 237 — 95,783 |
Summary of Financial Instruments Carried at Fair Value by Level of Inputs to Valuation Techniques | The table below analyzes the Group’s financial instruments carried at fair value as of December 31, 2022 by level of the inputs to valuation techniques used to measure fair value. As of December 31, 2021, the Group did no t have any financial instruments measured at fair value. Such valuation inputs are categorized into three levels within a fair value hierarchy as follows: (i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). (ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). (iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets Cash equivalents 127,926 — — 127,926 Financial assets at fair value through other comprehensive income 283,238 293,756 — 576,994 Total assets 411,164 293,756 — 704,920 |
Expenses by Nature (Tables)
Expenses by Nature (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Summary of Expenses by Nature | Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Clinical trials related expenses 107,440 424,724 551,771 Employee benefit expenses (Note 6) 27,243 120,173 143,819 Professional service fees (i) 31,784 69,498 69,312 R&D materials and consumable supplies 2,127 13,718 7,990 Depreciation and amortization 1,436 4,082 6,940 Office expenses 3,052 3,653 5,056 Expense related to Series C financing (ii) 19,655 — — Others 5,915 4,618 6,767 198,652 640,466 791,655 (i) The Group exclusively licenses CBP-174 from a third-party licensor. Such license is worldwide and royalty-bearing. As of December 31, 2022, CBP-174 has not yet been commercialized, the Group is only subject to a non-refundable, non-creditable license maintenance fee, which is paid to the third-party licensor on an annual basis and recorded as a consultancy fee within research and development expense. (ii) Represents a share-based compensation to additional Series C preferred shareholder, which was recognized as an administrative expense as set forth in Note 22. |
Employee Benefit Expenses (Tabl
Employee Benefit Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of employee benefits expense [abstract] | |
Schedule of Employee Benefit Expenses | Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Share-based compensation expenses (Note 22) 5,535 57,863 45,598 Wages, salaries and bonuses 19,527 56,122 84,356 Welfare expenses 520 4,820 12,191 Housing funds 690 1,368 1,674 Contributions to defined benefit plan (i, Note 27(d)) 971 — — 27,243 120,173 143,819 (i) The defined benefit plan was established in 2018 for one founder and subsequently terminated in 2020. The aggregate value of the benefits under this plan was fully funded and rolled over into an individual retirement account for the benefit of the founder. The Group does not have any further obligations with respect to such plan and is no longer subject to actuarial risk and investment risk. Employee benefit expenses were charged in the following line items in the consolidated statements of loss: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Research and development expenses 18,405 68,225 80,030 Administrative expenses 8,838 51,948 63,789 27,243 120,173 143,819 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Expense [Abstract] | |
Summary of Other income | Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Government grants 6,989 18,996 6,438 |
Other (Losses)_Gains-Net (Table
Other (Losses)/Gains-Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income (Losses) Net [Abstract] | |
Schedule of Other (Losses)/Gains-Net | Other (Losses)/Gains—net Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net foreign exchange (losses)/gains ( 6,772 ) ( 3,309 ) 9,629 Investment income from investments at fair value through profit and loss (iii) — — 1,711 Investment income from wealth management products (ii) 672 436 140 Other (losses)/gains (i) — ( 7,093 ) 953 ( 6,100 ) ( 9,966 ) 12,433 (i) The Group incurred a loss of RMB 7.0 million due to a phishing incident experienced in May 2021 which resulted in the Group remitting such amount to an account set up by the phishers rather than to one of the Group’s vendors. No loss of company data nor any loss or compromise of third-party information has been discovered. The Group filed an insurance claim and during the year ended December 31, 2022 recovered RMB 1.0 million (USD 0.1 million) from its cyber insurance provider. (ii) Investment income from wealth management products is based on discounted cash flows using their expected returns. Changes in fair value of these financial assets are recorded in other (losses)/gains – net in the consolidated statements of loss. The Group had no balance of investments from wealth management products at December 31, 2021 or 2022 (see Note 17(b)). (iii) Investment income from investments at fair value through profit and loss represent investment gains from money market investments included in cash equivalents (see Notes 3.3 and 17(b)). |
Finance (cost)_Income-Net (Tabl
Finance (cost)/Income-Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Profit (loss) [abstract] | |
Summary of Finance (cost)/Income-Net | Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Finance income Interest from bank deposits and term deposits 717 622 1,323 Interest income from investments at fair value through other comprehensive income — — 9,392 717 622 10,715 Finance cost Issuance cost of financial instruments with preferred rights ( 2,851 ) — — Interest for lease liabilities ( 42 ) ( 44 ) ( 144 ) ( 2,893 ) ( 44 ) ( 144 ) Finance (cost)/income—net ( 2,176 ) 578 10,571 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Schedule of Reconciliation between Actual Tax Charge and Amount Calculated based on Statutory Income Tax Rate | The reconciliation between the Group’s actual tax charge and the amount that is calculated based on the statutory income tax rate of 25% in the PRC is as follows: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss from operations in the PRC ( 85,788 ) ( 233,382 ) ( 263,291 ) Loss from overseas entities ( 693,437 ) ( 1,071,745 ) ( 531,727 ) Loss before income tax ( 779,225 ) ( 1,305,127 ) ( 795,018 ) Tax expense at PRC enterprise income tax rate of 25% ( 194,806 ) ( 326,282 ) ( 198,755 ) Expenses not deductible for income tax purpose 3,185 13,663 17,849 Super deduction of research and development expenses (i) ( 13,341 ) ( 35,523 ) ( 42,980 ) Tax losses and deductible temporary differences for which no deferred income tax assets were recognized 40,865 114,121 172,349 Effect of income tax in jurisdictions other than the PRC 164,097 235,718 53,574 Income tax expense — 1,697 2,037 (i) According to policies promulgated by the State Tax Bureau of the PRC, certain of the Company's subsidiaries are entitled to tax incentives for research and development expenses at 175 % of tax-deductible research and development expenses in 2020, 2021 and 2022. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Schedule of Basic and Diluted Net Losses Per Share | Basic and diluted net losses per share reflecting the effect of the issuance of ordinary shares by the Company are presented as follows. Year Ended December 31, 2020 2021 2022 Net loss attributable to owners of the Company (RMB’000) ( 779,225 ) ( 1,306,824 ) ( 797,055 ) Weighted average number of ordinary shares outstanding (in thousands) 17,090 52,177 55,044 Basic and diluted net loss per share (RMB) ( 45.6 ) ( 25.0 ) ( 14.5 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of Property, Plant and Equipment | Office Laboratory Leasehold furniture Assets under Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2021 Cost 5,672 1,461 585 1,906 9,624 Accumulated depreciation ( 1,460 ) ( 808 ) ( 417 ) — ( 2,685 ) Net book value 4,212 653 168 1,906 6,939 Year ended December 31, 2021 Opening net book value 4,212 653 168 1,906 6,939 Additions 30,440 793 422 24,121 55,776 Disposals ( 234 ) — ( 14 ) — ( 248 ) Depreciation ( 2,142 ) ( 813 ) ( 175 ) — ( 3,130 ) Transfers — 2,449 — ( 2,449 ) — Closing net book value 32,276 3,082 401 23,578 59,337 As of December 31, 2021 Cost 35,878 4,703 993 23,578 65,152 Accumulated depreciation ( 3,602 ) ( 1,621 ) ( 592 ) — ( 5,815 ) Net book value 32,276 3,082 401 23,578 59,337 Year ended December 31, 2022 Opening net book value 32,276 3,082 401 23,578 59,337 Exchange difference — ( 2 ) 9 — 7 Additions 2,172 456 829 9,528 12,985 Transfers 301 — — ( 301 ) — Disposals ( 3 ) — ( 1 ) — ( 4 ) Depreciation ( 3,315 ) ( 1,018 ) ( 528 ) — ( 4,861 ) Impairment loss* — — — ( 32,805 ) ( 32,805 ) Closing net book value 31,431 2,518 710 — 34,659 As of December 31, 2022 Cost 38,348 5,157 1,830 — 45,335 Accumulated depreciation ( 6,917 ) ( 2,639 ) ( 1,120 ) — ( 10,676 ) Net book value 31,431 2,518 710 — 34,659 * The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Miscellaneous non-current assets [abstract] | |
Schedule of Other Non-Current Assets | As of December 31, 2021 2022 RMB’000 RMB’000 Deductible value-added tax (i) 18,045 1,109 Prepayments for purchase of non-current assets 341 408 Others 420 237 18,806 1,754 (i) The RMB 18.0 million of value-added tax receivable as of December 31, 2021 was refunded to the Company during the year ended December 31, 2022. |
Right-of-Use Assets and Leases
Right-of-Use Assets and Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Schedule of Amounts Recognized in Consolidated Balance Sheets as Right-of-use Assets | Amounts recognized in the consolidated balance sheets was as follows: (a) Right-of-use assets Land use rights Office rent Total RMB’000 RMB’000 RMB’000 Net book amount as of January 1, 2020 — 883 883 Additions — 527 527 Depreciation — ( 481 ) ( 481 ) Net book amount as of December 31, 2020 — 929 929 Additions 22,284 517 22,801 Depreciation ( 297 ) ( 612 ) ( 909 ) Net book amount as of December 31, 2021 21,987 834 22,821 Additions — 3,582 3,582 Depreciation ( 446 ) ( 1,573 ) ( 2,019 ) Exchange difference 1 ( 48 ) ( 47 ) Net book amount as of December 31, 2022 21,542 2,795 24,337 As of December 31, 2022 Cost 22,284 6,189 28,473 Accumulated depreciation ( 742 ) ( 3,394 ) ( 4,136 ) Net Book value 21,542 2,795 24,337 |
Schedule of Amounts Recognized in Consolidated Balance Sheets as Lease Liability | We lease a research, development and administration facility in Taicang, Jiangsu Province, PRC, which expires on April 30, 2023 , and lease an executive and administration office in San Diego, California, which expires in April 2025 . The following tables provide information regarding these leases. As of December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Non-current 309 163 1,704 Current 604 630 1,294 . 913 793 2,998 |
Schedule of Amounts Recognized in Consolidated Statements of Loss in Addition to Right-of-use Asset Depreciation | Amounts recognized in the consolidated statements of loss in addition to the right-of-use asset depreciation expense are as follows: As of December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest expense 42 44 144 Expense relating to short-term leases (included in administrative expenses and research and development expenses) 45 12 — Expense relating to leases of low-value assets that are not shown above as short-term leases (included in administrative expenses and research and development expenses) 30 58 — 117 114 144 |
Financial Instruments by Cate_2
Financial Instruments by Category (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Financial Instruments by Category | Financial assets Financial assets Financial assets at FVOCI at amortized cost Total RMB’000 RMB’000 RMB’000 As of December 31, 2021 Other receivables — 6,423 6,423 Financial assets at fair value through other comprehensive income — — — Cash and cash equivalents — 1,706,880 1,706,880 — 1,713,303 1,713,303 Financial assets Financial assets Financial assets Financial assets at FVOCI at amortized cost at FVTPL Total RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2022 Other receivables — 1,971 — 1,971 Financial assets at fair value through other comprehensive income 576,994 — — 576,994 Cash and cash equivalents — 422,348 127,926 550,274 576,994 424,319 127,926 1,129,239 Financial liabilities at Financial Liabilities amortized cost RMB’000 As of December 31, 2021 Other payables 21,456 Trade payables 81,195 Lease liabilities 793 103,444 Financial liabilities at Financial Liabilities amortized cost RMB’000 As of December 31, 2022 Other payables 9,426 Trade payables 83,138 Lease liabilities 2,998 . 95,562 |
Other Receivables and Prepaym_2
Other Receivables and Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Receivables And Prepayments [Abstract] | |
Schedule of Other Receivables and Prepayments | As of December 31, 2021 2022 RMB’000 RMB’000 Prepayment for clinical trials related services 36,879 18,871 Prepaid expenses (i) 3,953 2,571 Deposits (ii) 4,312 356 Others 2,111 1,615 47,255 23,413 (i) In March 2022, the Group made payments to purchase director and officer liability insurance. Such expenses are amortized over one year . (ii) Deposits held by CRO suppliers are refundable upon the completion of related services. |
Financial Assets at Fair Value
Financial Assets at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Categories of financial assets [abstract] | |
Schedule of Financial Assets at Fair Value Through Comprehensive Income | at FVOCI consist of investments in the following: December 31, 2022 RMB’000 Non-current assets U.S. Treasury bills 11,739 Listed bonds 54,005 65,744 Current assets U.S. Treasury bills 271,499 Government agency bond 8,365 Listed bonds 52,730 Unlisted debt securities (i) 178,656 511,250 December 31, 2022 RMB’000 Interest income recognized in profit and loss related to debt investments 9,392 Losses recognized in other comprehensive income related to debt investments ( 2,513 ) |
Summary of Changes in Financial Instruments of Short-term and Long-term Investments | The following amounts table presents changes in Level 1 and 2 instruments of short-term and long-term investments for debt investments at FVOCI: Year Ended December 31, 2022 RMB’000 Financial assets at fair value through other comprehensive income Opening balance — Additions 737,494 Settlements (including coupon interest received) ( 195,364 ) Accrued interest 3,333 Discount accreted 6,059 Change in fair value debited to other comprehensive income* ( 2,513 ) Exchange difference 27,985 Closing balance 576,994 * - includes unrealized gains / (losses) recognized in other comprehensive income attributable to balances held at the end of the reporting period. |
Summary of Financial Assets at Fair Value Through Profit or Loss | The following table presents the changes in Level 3 instruments of short-term investments in wealth management products for the years ended December 31, 2020, 2021 and 2022. Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Financial assets at fair value through profit or loss Opening balance 30,632 13,068 — Additions 106,600 114,500 41,000 Settlements ( 124,836 ) ( 128,004 ) ( 41,140 ) Fair value gains recognized in profit or loss (Note 8)* 672 436 140 Closing balance 13,068 — — *Includes unrealized gains recognized in profit or loss attributable to balances held at the end of the reporting period 68 — — The following table presents the changes in Level 1 instruments of money market funds included in cash equivalents for the year ended December 31, 2022. Year Ended December 31, 2022 RMB’000 Financial assets at fair value through profit or loss Opening balance — Additions 655,806 Settlements (including coupon interest received, net of fees) ( 536,858 ) Investment income credited to profit or loss 1,711 Exchange difference 7,267 Closing balance 127,926 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Summary of Cash and Cash Equivalents | As of December 31, 2021 2022 RMB’000 RMB’000 Cash at bank - USD deposits 1,645,948 353,379 - RMB deposits 57,595 63,856 - Australian Dollar deposit 3,337 5,113 Cash equivalents (i) — 127,926 1,706,880 550,274 (i) Due to their liquidity, investments in money market funds and short-term investments with original maturities of 90 days or less, are classified as cash equivalents. Accordingly, these cash equivalents are recorded at their fair value, with their changes in fair value reflected in profit or loss (see Note 17(b)). |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Share Capital and Share Premium | Number of Ordinary Shares Share Capital Share Premium(i) Total RMB’000 RMB’000 RMB’000 As of January 1, 2020 17,684,770 21 38,123 38,144 Issuance of shares to Co-Founders (iii, Note 22) 282,526 1 3,343 3,344 Issuance of treasury shares 1,686,495 2 — 2 As of December 31, 2020 19,653,791 24 41,466 41,490 Issuance of ordinary shares (i) 12,937,500 14 1,305,805 1,305,819 Conversion from preferred shares to ordinary shares (Note 24) 24,791,804 28 2,743,597 2,743,625 Repurchase of ordinary shares (ii) ( 20,765 ) — — — Issuance of shares to Co-Founders (iii, Note 22) 121,080 — 1,417 1,417 Exercise of stock options — — 2,149 2,149 As of December 31, 2021 57,483,410 66 4,094,434 4,094,500 Issuance of ordinary shares (v) 25,468 — 132 132 Shares surrendered and cancelled (iv) ( 60,540 ) — — — As of December 31, 2022 57,448,338 66 4,094,566 4,094,632 (i) In March 2021, 12,937,500 ADSs (representing 12,937,500 ordinary shares, including the exercise of the option by the underwriters in full to purchase additional ADSs) were offered by the Company in connection with its listing on Nasdaq, and the proceeds received were USD 219.9 million or RMB 1,431.8 million based on the exchange rate as of the date of the IPO. The Company incurred issuance costs of USD 19.3 million in connection with this offering. (ii) In March 2021, at the request of one co-founder, the Company repurchased 20,765 ordinary shares from him for a consideration of RMB 2.5 million (USD 0.4 million) for the payment of employee withholding taxes related to share-based awards, then such shares were cancelled accordingly. (iii) Pursuant to the Company’s shareholder agreement in effect as of the completion of the Series C financing (see Note 22), each of the Company’s founders was entitled to two or more votes to ensure the Co-Founders control the majority of the votes under certain circumstances. (iv) In May 2022, a related party surrendered 60,540 ordinary shares for no consideration. The surrendered shares were cancelled. In relation to the share surrender, the Company did not enter into any agreement or commitment for future consideration or compensation. (v) On November 1, 2022, the 25,468 shares were issued under the 2021 ESPP Plan. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Summary of Options Outstanding | The options activities under 2019 and 2021 Plans (after the Share Consolidation) for the years ended December 31, 2020, 2021 and 2022 were as follows: Number of options Weighted average Options outstanding as of January 1, 2020 190,762 Granted 1,500,887 USD 6.6 Forfeited (i) ( 25,766 ) USD 0.9 Options outstanding as of December 31, 2020 1,665,883 Granted 2,403,660 USD 13.8 Exercised ( 163,773 ) USD 0.9 Forfeited (i) ( 157,381 ) USD 14.7 Options outstanding as of December 31, 2021 3,748,389 Granted 2,986,547 USD 3.4 Forfeited (i) ( 1,631,309 ) USD 9.6 Options outstanding as of December 31, 2022 5,103,627 Options exercisable as of December 31, 2022 1,329,119 (i) The options were forfeited when the employment terminated. |
Summary of Key Assumptions for Options Granted | Key assumptions for the options granted for the periods and ESPP compensation are set forth below: Stock Incentive Plan ESPP Year Ended December 31 Year Ended December 31 2020 2021 2022 2022 Weighted average exercise price during the year USD 6.6 USD 13.8 USD 3.44 (i) Grant date share price USD 2.1 ~USD 11.1 USD 4.3 ~USD 23.3 USD 0.75 ~USD 4.91 USD 0.86 ~USD 1.86 Risk-free interest rate 0.8 %~ 1.1 % 1.2 %~ 1.7 % 1.9 %~ 3.4 % 1.5 %~ 4.8 % Expected volatility 61.8 %~ 77.4 % 60.5 %~ 62.2 % 61.4 %~ 62.0 % 51.1 %- 60.2 % Option life 10 years 10 years 10 years 0.5 ~ 2.0 years Expected early exercise multiple 2.2 2.2 2.2 ~ 2.8 N/A Dividend yield Nil Nil Nil Nil Forfeiture rate 9.5 % * 3.0 %- 9.6 % * 3.0 %- 10.8 % 3.0 % Weighted average fair value of options granted during the year USD 4.2 USD 10.6 USD 1.98 USD 0.71 * During the year ended December 31, 2022, the forfeiture rates for executives was 3.0 % and ranged between 7.7 % to 10.8 % for all other employees. (i) Discounted ESPP price for issued shares during the year ended December 31, 2022 was $ 0.74 . |
Summary of Share-Based Compensation Expenses | Share-based compensation expenses included in the consolidated statements of loss for the years ended December 31, 2020, 2021 and 2022 is as follows: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Research and development expenses (Note 6) 3,523 26,532 20,226 Administrative expenses (Note 5(ii), Note 6) 21,667 31,331 25,372 25,190 57,863 45,598 |
Other Payables and Accruals (Ta
Other Payables and Accruals (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other payables [abstract] | |
Schedule of Other Payables and Accruals | As of December 31, 2021 2022 RMB’000 RMB’000 Construction payables 16,576 1,424 Payroll, welfare and bonus payables 11,384 14,959 Accrued professional service fee 2,318 5,696 Others 2,562 2,306 32,840 24,385 |
Financial Instruments with Pr_2
Financial Instruments with Preferred Rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary of Series of Financings by Issuing Preferred Shares | The Group has completed a series of financings by issuing preferred shares with the following details: Subscription Number of consideration Date of subscription Round preferred shares RMB’000 March 3, 2016 Series Pre-A 3,109,000 33,110 January 3, 2017 Series A 8,471,200 137,868 December 20, 2018 Series B 10,127,579 379,148 August 21, 2020 / December 1, 2020 Series C 21,349,537 923,247 43,057,316 1,473,373 |
Movements of Financial Instruments with Preferred Rights | Movements of financial instruments with preferred rights during the years ended December 31, 2020 and 2021 was as follows: Fair value RMB’000 As of January 1, 2020 643,008 Issuance of Series C Preferred Shares 923,247 Change in fair value recognized in profit or loss 579,286 Share-based compensation to additional Series C preferred shareholder 19,655 Change in fair value due to foreign currency translation recognized in other comprehensive income ( 93,688 ) As of December 31, 2020 2,071,508 Change in fair value recognized in profit or loss 674,269 Change in fair value due to foreign currency translation recognized in other comprehensive income ( 2,152 ) Converted to ordinary shares upon IPO ( 2,743,625 ) As of December 31, 2021 — |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash Flow Information [Abstract] | |
Summary of Cash Used in Operations | (a) Cash used in operations Year Ended December 31, Notes 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net loss before income tax ( 779,225 ) ( 1,305,127 ) ( 795,018 ) Adjustments for: —Interest for lease liabilities 9 42 44 144 —Investment income from investments in wealth management products 17(b) ( 672 ) ( 436 ) ( 140 ) —Interest income from investments at fair value through other comprehensive income 17(a) — — ( 9,392 ) —Amortization of intangible assets 7 43 60 —Depreciation of property, plant and equipment 12 955 3,130 4,861 —Depreciation of rights-of-use assets 14 481 909 2,019 —Net impairment losses 12 — — 32,805 —Share-based compensation expenses 22 25,190 57,863 45,598 —Net foreign exchange differences 8 6,772 3,309 ( 9,629 ) —Fair value changes of financial instruments with preferred rights 24 579,286 674,269 — —Issuance cost of financial instruments with preferred rights 9 2,851 — — —Loss on disposal of property, plant and equipment — 250 4 Changes in working capital —Other receivables and prepayments ( 9,350 ) ( 16,116 ) 23,084 —Other non-current assets ( 3,906 ) ( 8,206 ) 17,052 —Other payables and accruals 8,558 ( 11,459 ) 6,315 —Trade payables 1,850 56,601 2,572 Net cash used in operations ( 167,161 ) ( 544,926 ) ( 679,665 ) |
Summary of Supplemental Cash Flow Information | Supplemental Cash Flow Information: Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest received 1,381 622 2,894 Income taxes paid — — 3,221 |
Summary of Non-cash Investing and Financing Activities | (b) Non-cash investing and financing activities Year Ended December 31, Notes 2020 2021 2022 RMB’000 RMB’000 RMB’000 Construction payables — 16,576 1,424 Fair value changes of financial instruments with preferred rights 24 579,286 674,269 — Share-based compensation to additional Series C preferred shareholder 22 19,655 — — 598,941 690,845 1,424 |
Summary of Reconciliation of Liabilities Arising from Financing Activities | (c) Reconciliation of liabilities arising from financing activities Financial instruments with preferred rights Lease liability RMB’000 RMB’000 At January 1, 2020 643,008 882 Cash flows 923,247 ( 538 ) New leases 527 Interest expenses — 42 Differences of foreign currency translation ( 93,688 ) — Changes in fair value 579,286 — Share-based compensation to additional Series C preferred shareholder 19,655 — At December 31, 2020 2,071,508 913 Cash flows ( 805 ) New leases — 641 Interest expenses — 44 Differences of foreign currency translation ( 2,152 ) — Changes in fair value 674,269 — Conversion to ordinary shares ( 2,743,625 ) — At December 31, 2021 — 793 Cash flows — ( 1,515 ) New leases — 3,576 Interest expenses — 144 At December 31, 2022 — 2,998 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Capital commitments [abstract] | |
Schedule of Capital Commitments | Capital commitments Year Ended December 31, 2021 2022 RMB’000 RMB’000 Equipment and intangible assets - Contracted but not provided for 146,878 — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
Schedule of Significant Transactions and Balances with Related Parties | (b) Significant transactions with related parties Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Purchase of clinical trials related services Hangzhou Simo Company Limited 5,948 — — Frontage Laboratories (Suzhou) Company Limited 2,157 — — Hangzhou Tigermed Consulting Company Limited 1,069 — — Beijing Medical Development (Suzhou) Company Limited 301 — — Shanghai Tigermed Consulting Company Limited 34 — — (c) Balances with related parties The Group had no balances with related parties at December 31, 2021 or December 31, 2022. |
Summary of Key Management Personnel Compensation | (d) Key management personnel compensation Year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wages, salaries and bonuses 8,013 18,100 18,254 Share-based compensation expenses 1,148 28,266 18,293 Contributions to defined benefit plan (i) 971 — — Welfare, housing funds and other 180 308 487 10,312 46,674 37,034 (i) The defined benefit plan was established in 2018 for one founder and subsequently terminated in 2020. The aggregate value of the benefits under this plan was fully funded and rolled over into an individual retirement account for the benefit of the founder following termination. The Group will have no further obligations with respect to such plan and is no longer subject to actuarial risk and investment risk. The benefit obligation was determined using certain assumptions, including life annuity factor and specified interest rate, which were published by the U.S. Internal Revenue Service. |
Restricted Net Assets and Par_2
Restricted Net Assets and Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets And Parent Company Condensed Financial Information [Abstract] | |
Schedule of Condensed Financial Information For the Parent Company | The Company performs a test on the restricted net assets of its consolidated subsidiaries (the “Restricted Net Assets”) in accordance with Securities and Exchange Commission Regulation S-X Section 4-08 (e) (3) “General Notes to Financial Statements” and concluded that the condensed financial information for the parent company is required to be presented as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. (a) Condensed balance sheets As of December 31, 2021 2022 2022 RMB’000 RMB’000 USD’000 ASSETS Non-current assets Interest in a subsidiary 1,177,380 2,004,960 287,879 Financial assets at fair value through other comprehensive income — 65,744 9,440 Total non-current assets 1,177,380 2,070,704 297,319 Current assets Cash and cash equivalents 1,464,637 334,106 47,972 Financial assets at fair value through other comprehensive income — 511,250 73,407 Other receivables 86,352 90,197 12,951 Other current assets — 2,571 369 Total current assets 1,550,989 938,124 134,699 Total assets 2,728,369 3,008,828 432,018 LIABILITIES Current liabilities Trade payables 49 — — Other payables and accruals 34,190 51,051 7,330 Total current liabilities 34,239 51,051 7,330 Total liabilities 34,239 51,051 7,330 Net assets 2,694,130 2,957,777 424,688 SHAREHOLDERS’ EQUITY Share capital 66 66 9 Share premium 4,094,434 4,094,566 587,911 Treasury shares ( 1,164 ) ( 1,164 ) ( 167 ) Other reserves ( 10,359 ) 282,789 40,605 Accumulated losses ( 1,388,847 ) ( 1,418,480 ) ( 203,670 ) Total shareholders’ equity 2,694,130 2,957,777 424,688 (b) Condensed statements of loss Year Ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 USD’000 Administrative expenses ( 29,540 ) ( 43,710 ) ( 41,694 ) ( 5,987 ) Other gain - net — — 2,669 383 Operating loss ( 29,540 ) ( 43,710 ) ( 39,025 ) ( 5,604 ) Finance (costs)/income - net ( 2,758 ) — 9,392 1,349 Fair value loss of financial instruments with preferred rights ( 579,286 ) ( 674,269 ) — — Net loss before income tax ( 611,584 ) ( 717,979 ) ( 29,633 ) ( 4,255 ) Income tax expense — — — — Net loss for the year ( 611,584 ) ( 717,979 ) ( 29,633 ) ( 4,255 ) (c) Condensed statements of cash flows Year Ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 USD’000 Net cash used in operating activities ( 4,766 ) ( 31,025 ) ( 22,500 ) ( 3,231 ) Net cash used in investing activities ( 204,170 ) ( 672,529 ) ( 1,244,278 ) ( 178,657 ) Net cash generated from financing activities 934,284 1,319,418 964 138 Net increase/(decrease) in cash and cash equivalents 725,348 615,864 ( 1,265,814 ) ( 181,750 ) Cash and cash equivalents at the beginning of year 213,253 885,611 1,464,637 210,297 Effects of exchange rate changes on cash and cash equivalents ( 52,990 ) ( 36,838 ) 135,283 19,425 Cash and cash equivalents at end of year 885,611 1,464,637 334,106 47,972 |
General Information, Reorgani_3
General Information, Reorganization and Basis of Presentation - Additional Information (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Mar. 12, 2021 | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | ||
Date of incorporation | Nov. 23, 2015 | |
Country of incorporation | Cayman Islands | |
Address of registered office | P.O. Box 613, Harbour Centre, George Town, Grand Cayman KY1-1107, Cayman Islands. | |
Par value | $ 0.0001 | |
Ordinary Shares | ||
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | ||
Number of shares represented by one depositary shares | 1 | |
Par value | $ 0.000174 | $ 0.000174 |
General Information, Reorgani_4
General Information, Reorganization and Basis of Presentation - Summary of Direct or Indirect Interests in Principal Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Date of incorporation | Nov. 23, 2015 |
Connect Biopharma HongKong Limited | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Investment holding |
Place of incorporation | Hong Kong |
Date of incorporation | Dec. 01, 2015 |
Attributable equity interest to the Group | 100% |
Connect Biopharm LLC | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | San Diego, United States of America |
Date of incorporation | Jan. 24, 2012 |
Attributable equity interest to the Group | 100% |
Connect Biopharma Australia PTY LTD | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | Prahran, Australia |
Date of incorporation | Jul. 18, 2014 |
Attributable equity interest to the Group | 100% |
Suzhou Connect Biopharma Co., Ltd. | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | Suzhou, PRC |
Date of incorporation | May 02, 2012 |
Attributable equity interest to the Group | 100% |
Connect Biopharma (Shanghai) Co., Ltd | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | Shanghai, PRC |
Date of incorporation | Oct. 23, 2015 |
Attributable equity interest to the Group | 100% |
Connect Biopharma (Beijing) Co., Ltd | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | Beijing, PRC |
Date of incorporation | Jul. 09, 2019 |
Attributable equity interest to the Group | 100% |
Connect Biopharma (Shenzhen) Co., Ltd | |
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items] | |
Principal activities | Pharmaceutical R&D |
Place of incorporation | Shenzhen, PRC |
Date of incorporation | Nov. 15, 2021 |
Attributable equity interest to the Group | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 19, 2021 | Mar. 31, 2021 CNY (¥) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 CNY (¥) Segment | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | ||||||||
Net assets | ¥ 1,096,900,000 | ¥ 1,735,831,000 | $ 157,500 | |||||
Accumulated losses | (3,175,200,000) | (455,900) | ||||||
Net operating loss | 805,600,000 | $ 115,700 | 631,436,000 | ¥ 197,763,000 | ||||
Net operating cash outflow | ¥ 679,700,000 | 97,588 | 544,926,000 | ¥ 167,161,000 | ||||
Cumulative cash contributions | $ | 440,100 | |||||||
Closing foreign exchange rate | 6.9646 | |||||||
Cash, cash equivalents, and short-term investments | ¥ 1,061,500,000 | 152,400 | ||||||
Long-term investments | 65,700,000 | $ 9,400 | ||||||
Proceeds from issue of ordinary shares | ¥ 1,431,800,000 | $ 219,900 | ¥ 132,000 | $ 18 | ¥ 1,431,775,000 | |||
Depreciation method | Depreciation is calculated using the straight-line method | Depreciation is calculated using the straight-line method | ||||||
Equity investment | ¥ 0 | |||||||
Number of segments | Segment | 1 | 1 | ||||||
Preferred shares conversion ratio | 1 | |||||||
Bottom of range | ||||||||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | ||||||||
Offices and rental contract lease term | 2 years | 2 years | ||||||
Top of range | ||||||||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | ||||||||
Offices and rental contract lease term | 4 years | 4 years | ||||||
Software | ||||||||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | ||||||||
Intangible assets estimated useful lives | 10 years | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range | Laboratory Equipment | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | 5 years |
Bottom of range | Leasehold Improvements | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | Shorter of lease term |
Bottom of range | Office Equipment and Furniture | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | 3 years |
Top of range | Laboratory Equipment | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | 10 years |
Top of range | Leasehold Improvements | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | 5 years |
Top of range | Office Equipment and Furniture | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Useful life | 5 years |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Summary of Exposure to Foreign Currency Risk (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Disclosure Of Financial Instruments [Line Items] | ||||||
Cash and cash equivalents | ¥ 550,274 | $ 79,010 | ¥ 1,706,880 | $ 245,079 | ¥ 1,010,076 | ¥ 308,972 |
Foreign Currency Risk | ||||||
Disclosure Of Financial Instruments [Line Items] | ||||||
Cash and cash equivalents | ¥ 113,583 | ¥ 150,640 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Summary of Aggregate Net Foreign Exchange Gains/(Losses) Recognized in Profit or Loss (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |||
Net foreign exchange (losses)/gains included in other (losses)/gains - net | ¥ 9,629 | ¥ (3,309) | ¥ (6,772) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |||
Percentage of foreign exchange transactions | 5% | 5% | 5% |
Increase decrease in foreign exchange transactions | ¥ 5,700,000 | ¥ 7,500,000 | ¥ 3,300,000 |
Debt outstanding | ¥ 0 | 0 | |
Financial assets measured at fair value | 0 | ||
Financial liabilities measured at fair value | ¥ 0 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Summary of Financial Liabilities into Maturity Groupings Based on Remaining Period to Contractual Maturity Date (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Disclosure Of Financial Instruments [Line Items] | ||||
Trade payables | ¥ 83,138 | $ 11,937 | ¥ 81,195 | |
Other payables | 2,306 | 2,562 | ||
Lease liabilities | 2,998 | 793 | ¥ 913 | |
Credit Risk | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Trade payables | 83,138 | 81,195 | ||
Other payables | 9,426 | 21,456 | ||
Lease liabilities | 3,219 | 839 | ||
Total | 95,783 | 103,490 | ||
Credit Risk | Less than 1 Year | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Trade payables | 83,138 | 81,195 | ||
Other payables | 9,426 | 21,456 | ||
Lease liabilities | 1,570 | 653 | ||
Total | 94,134 | 103,304 | ||
Credit Risk | Between 1 and 2 Years | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Lease liabilities | 1,412 | 186 | ||
Total | 1,412 | ¥ 186 | ||
Credit Risk | Between 2 and 5 Years | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Lease liabilities | 237 | |||
Total | ¥ 237 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Summary of Financial Instruments Carried at Fair Value by Level of Inputs to Valuation Techniques (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Financial Instruments [Line Items] | ||
Cash equivalents | ¥ 127,926 | |
Total assets | 1,129,239 | ¥ 1,713,303 |
Recurring | ||
Disclosure Of Financial Instruments [Line Items] | ||
Cash equivalents | 127,926 | |
Financial assets at fair value through other comprehensive income | 576,994 | |
Total assets | 704,920 | |
Recurring | Level 1 | ||
Disclosure Of Financial Instruments [Line Items] | ||
Cash equivalents | 127,926 | |
Financial assets at fair value through other comprehensive income | 283,238 | |
Total assets | 411,164 | |
Recurring | Level 2 | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial assets at fair value through other comprehensive income | 293,756 | |
Total assets | ¥ 293,756 |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function [abstract] | |||
Clinical trials related expenses | ¥ 551,771 | ¥ 424,724 | ¥ 107,440 |
Employee benefit expenses (Note 6) | 143,819 | 120,173 | 27,243 |
Professional service fees (i) | 69,312 | 69,498 | 31,784 |
R&D materials and consumable supplies | 7,990 | 13,718 | 2,127 |
Depreciation and amortization | 6,940 | 4,082 | 1,436 |
Office expenses | 5,056 | 3,653 | 3,052 |
Expense related to Series C financing (ii) | 19,655 | ||
Others | 6,767 | 4,618 | 5,915 |
Total expenses, by nature | ¥ 791,655 | ¥ 640,466 | ¥ 198,652 |
Employee Benefit Expenses - Sch
Employee Benefit Expenses - Schedule of Employee Benefit Expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of employee benefits expense [abstract] | |||
Share-based compensation expenses (Note 22) | ¥ 45,598 | ¥ 57,863 | ¥ 5,535 |
Wages, salaries and bonuses | 84,356 | 56,122 | 19,527 |
Welfare expenses | 12,191 | 4,820 | 520 |
Housing funds | 1,674 | 1,368 | 690 |
Contributions to defined benefit plan (Note 27(d)) | 971 | ||
Employee benefit expenses | ¥ 143,819 | ¥ 120,173 | ¥ 27,243 |
Employee Benefit Expenses - S_2
Employee Benefit Expenses - Schedule of Employee Benefit Expenses Included in Consolidated Statements of Loss (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Defined Benefit Plans [Line Items] | |||
Employee benefit expenses | ¥ 143,819 | ¥ 120,173 | ¥ 27,243 |
Research and Development Expenses | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
Employee benefit expenses | 80,030 | 68,225 | 18,405 |
Administrative Expenses | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
Employee benefit expenses | ¥ 63,789 | ¥ 51,948 | ¥ 8,838 |
Other Income - Summary of Other
Other Income - Summary of Other Income (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Income Expense [Abstract] | |||
Government grants | ¥ 6,438 | ¥ 18,996 | ¥ 6,989 |
Other Income - Additional Infor
Other Income - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income Expense [Abstract] | |||
Government grants received | ¥ 11 | ¥ 7 | |
Grants received from other subsidies | ¥ 5.9 | 6.2 | |
Revenue from government as an incentive for research and development | ¥ 1.6 |
Other (Losses)_Gains-Net - Sche
Other (Losses)/Gains-Net - Schedule of Other (Losses)/Gains-Net (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Other Income (Losses) Net [Abstract] | |||||
Net foreign exchange (losses)/gains | ¥ 9,629 | ¥ (3,309) | ¥ (6,772) | ||
Investment income from investments at fair value through profit and loss | 1,711 | ||||
Investment income from wealth management products | 140 | 436 | 672 | ||
Other (losses)/gains | ¥ (7,000) | 953 | (7,093) | ||
Other (Losses)/Gains-Net | ¥ 12,433 | $ 1,785 | ¥ (9,966) | ¥ (6,100) |
Other (Losses)_Gains-Net - Sc_2
Other (Losses)/Gains-Net - Schedule of Other (Losses)/Gains-Net (Parenthetical) (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Other Income (Losses) Net [Abstract] | ||||
Other loss | ¥ 7,000 | ¥ (953) | ¥ 7,093 | |
Losses partially recovered from cyber insurance | ¥ 1,000 | $ 0.1 |
Finance (cost)_Income-Net - Sum
Finance (cost)/Income-Net - Summary of Finance (cost)/Income-Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Finance Income Expense [Abstract] | ||||
Interest from bank deposits and term deposits | ¥ 1,323 | ¥ 622 | ¥ 717 | |
Interest and investment income from investments at fair value through other comprehensive income | 9,392 | |||
Finance income | 10,715 | $ 1,538 | 622 | 717 |
Issuance cost of financial instruments with preferred rights | (2,851) | |||
Interest for lease liabilities | (144) | (44) | (42) | |
Finance costs | (144) | (21) | (44) | (2,893) |
Finance (cost)/income-net | ¥ 10,571 | $ 1,517 | ¥ 578 | ¥ (2,176) |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Apr. 01, 2018 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Income Taxes [Line Items] | |||||
Tax expenses (income) | ¥ (198,755,000) | ¥ (326,282,000) | ¥ (194,806,000) | ||
Provision for income taxes | 2,037,000 | $ 292 | 1,697,000 | ||
Deferred income tax assets recognized | 0 | ||||
Deductible temporary differences for which no deferred tax asset is recognized | 2,203,000,000 | 1,327,000,000 | 582,000,000 | ||
Unrecognized uncertain tax positions | 0 | 0 | 0 | ||
Research and development tax credits | 36,500,000 | ||||
Operating losses | (805,600,000) | $ (115,700) | (631,436,000) | (197,763,000) | |
Connect Biopharm LLC | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Provision for income taxes | ¥ 2,000,000 | ¥ 1,700,000 | ¥ 0 | ||
Hong Kong | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Tax rate | 16.50% | 0% | 0% | 0% | 0% |
Assessable profits | ¥ 0 | ¥ 0 | ¥ 0 | ||
Hong Kong | Bottom of range | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Percentage of assessable profits | 8.25% | ||||
Assessable profits | ¥ 2,000 | ||||
UNITED STATES | Connect Biopharma HongKong Limited | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Corporate income tax rate | 21% | 21% | 21% | 21% | |
State Income Tax in California | Connect Biopharm LLC | |||||
Disclosure Of Income Taxes [Line Items] | |||||
State income tax rate | 8.84% | 8.84% | 8.84% | 8.84% | |
Australia | Connect Biopharma Australia PTY LTD | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Tax rate | 30% | 30% | |||
Tax expenses (income) | ¥ 0 | ¥ 0 | ¥ 0 | ||
Provision for income taxes | ¥ 0 | ¥ 0 | ¥ 0 | ||
PRC | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Tax rate | 25% | 25% | 25% | 25% | |
Assessable profits | ¥ 0 | ¥ 0 | ¥ 0 | ||
Tax expenses (income) | ¥ 0 | 0 | 0 | ||
Provision for income taxes | ¥ 0 | ¥ 0 |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation between Actual Tax Charge and Amount Calculated based on Statutory Income Tax Rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Income Taxes [Line Items] | ||||
Loss from operations in the PRC | ¥ (263,291) | ¥ (233,382) | ¥ (85,788) | |
Profit (loss) from overseas entities | (531,727) | (1,071,745) | (693,437) | |
Loss before income tax | (795,018) | $ (114,152) | (1,305,127) | (779,225) |
Tax expense at PRC enterprise income tax rate of 25% | (198,755) | (326,282) | (194,806) | |
Expenses not deductible for income tax purpose | 17,849 | 13,663 | 3,185 | |
Super deduction of research and development expenses | (42,980) | (35,523) | (13,341) | |
Tax losses and deductible temporary differences for which no deferred income tax assets were recognized | 172,349 | 114,121 | 40,865 | |
Effect of income tax in jurisdictions other than the PRC | 53,574 | 235,718 | ¥ 164,097 | |
Income tax expense | ¥ 2,037 | $ 292 | ¥ 1,697 |
Income taxes - Schedule of Re_2
Income taxes - Schedule of Reconciliation between Actual Tax Charge and Amount Calculated based on Statutory Income Tax Rate (Parenthetical) (Details) - PRC | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Income Taxes [Line Items] | |||
Tax rate | 25% | 25% | 25% |
Percentage of tax-deductible research and development expenses | 175% | 175% | 175% |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) | Mar. 12, 2021 shares |
Earnings per share [abstract] | |
Ordinary shares consolidation | 1.74 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Losses Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Earnings per share [abstract] | ||||
Net loss attributable to owners of the Company (RMB'000) | ¥ (797,055) | $ (114,444) | ¥ (1,306,824) | ¥ (779,225) |
Weighted average number of ordinary shares outstanding (in thousands) | 55,044 | 55,044 | 52,177 | 17,090 |
Basic and diluted net loss per share (RMB) | (per share) | ¥ (14.5) | $ (2.1) | ¥ (25) | ¥ (45.6) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | ¥ 34,659 | ¥ 59,337 | ¥ 6,939 | $ 4,976 | |||
Exchange difference | 114,877 | (37,038) | 47,032 | ||||
Exchange difference | 7 | ||||||
Additions | 12,985 | 55,776 | |||||
Disposals | (4) | (248) | |||||
Depreciation | (4,861) | (3,130) | |||||
Impairment loss | 32,805 | [1] | $ 4,710 | ||||
Cost | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 45,335 | 65,152 | 9,624 | ||||
Accumulated depreciation | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | (10,676) | (5,815) | (2,685) | ||||
Laboratory Equipment | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 31,431 | 32,276 | 4,212 | ||||
Additions | 2,172 | 30,440 | |||||
Disposals | (3) | (234) | |||||
Depreciation | (3,315) | (2,142) | |||||
Transfers | 301 | ||||||
Laboratory Equipment | Cost | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 38,348 | 35,878 | 5,672 | ||||
Laboratory Equipment | Accumulated depreciation | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | (6,917) | (3,602) | (1,460) | ||||
Leasehold Improvements | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 2,518 | 3,082 | 653 | ||||
Exchange difference | (2) | ||||||
Additions | 456 | 793 | |||||
Depreciation | (1,018) | (813) | |||||
Transfers | 2,449 | ||||||
Leasehold Improvements | Cost | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 5,157 | 4,703 | 1,461 | ||||
Leasehold Improvements | Accumulated depreciation | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | (2,639) | (1,621) | (808) | ||||
Office Equipment, Furniture and Others | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 710 | 401 | 168 | ||||
Exchange difference | 9 | ||||||
Additions | 829 | 422 | |||||
Disposals | (1) | (14) | |||||
Depreciation | (528) | (175) | |||||
Office Equipment, Furniture and Others | Cost | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 1,830 | 993 | 585 | ||||
Office Equipment, Furniture and Others | Accumulated depreciation | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | (1,120) | (592) | (417) | ||||
Assets Under Construction | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | 0 | 23,578 | 1,906 | ||||
Additions | 9,528 | 24,121 | |||||
Transfers | (301) | (2,449) | |||||
Impairment loss | [1] | ¥ 32,805 | |||||
Assets Under Construction | Cost | |||||||
Disclosure Of Property Plant And Equipment [Line Items] | |||||||
Property, plant and equipment | ¥ 23,578 | ¥ 1,906 | |||||
[1] The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Parenthetical) (Details) - 12 months ended Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Net impairment losses | ¥ 32,805 | [1] | $ 4,710 | |
Construction in Progress | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Net impairment losses | [1] | ¥ 32,805 | ||
[1] The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Non-current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Miscellaneous non-current assets [abstract] | |||
Deductible value-added tax | ¥ 1,109 | ¥ 18,045 | |
Prepayments for purchase of non-current assets | 408 | 341 | |
Others | 237 | 420 | |
Other non-current assets | ¥ 1,754 | $ 252 | ¥ 18,806 |
Other Non-Current Assets - Sc_2
Other Non-Current Assets - Schedule of Other Non-current Assets (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Value-added tax receivable | ¥ 1,109 | ¥ 18,045 |
Value-added tax receivable refunded | ¥ 18,000 |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Leases - Schedule of Amounts Recognized in Consolidated Balance Sheets as Right-of-use Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||||
Net book amount. Beginning balance | ¥ 22,821 | ¥ 929 | ¥ 883 | |
Additions | 3,582 | 22,801 | 527 | |
Depreciation | (2,019) | (909) | (481) | |
Exchange difference | (47) | |||
Net book amount, Ending balance | 24,337 | $ 3,494 | 22,821 | 929 |
Cost | 28,473 | |||
Accumulated deprecation | 4,136 | |||
Net Book value | 24,337 | 22,821 | 929 | |
Land use Rights | ||||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||||
Net book amount. Beginning balance | 21,987 | |||
Additions | 22,284 | |||
Depreciation | (446) | (297) | ||
Exchange difference | 1 | |||
Net book amount, Ending balance | 21,542 | 21,987 | ||
Cost | 22,284 | |||
Accumulated deprecation | (742) | |||
Net Book value | 21,542 | 21,987 | ||
Office Rent | ||||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||||
Net book amount. Beginning balance | 834 | 929 | 883 | |
Additions | 3,582 | 517 | 527 | |
Depreciation | (1,573) | (612) | (481) | |
Exchange difference | (48) | |||
Net book amount, Ending balance | 2,795 | 834 | 929 | |
Cost | 6,189 | |||
Accumulated deprecation | 3,394 | |||
Net Book value | ¥ 2,795 | ¥ 834 | ¥ 929 |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Leases - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Total cash outflow for leases | ¥ 1.5 | ¥ 0.8 | ¥ 0.5 |
Taicang, Jiangsu Province, PRC | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Research, development and administration facility lease expiration period | Apr. 30, 2023 | ||
San Diego, California | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Executive and adminisitration office lease expiration period | 2025-04 |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Leases - Schedule of Amounts Recognized in Consolidated Balance Sheets as Lease Liability (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Presentation of leases for lessee [abstract] | ||||
Non-current | ¥ 1,704 | $ 245 | ¥ 163 | ¥ 309 |
Current | 1,294 | $ 186 | 630 | 604 |
Total lease liabilities | ¥ 2,998 | ¥ 793 | ¥ 913 |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Leases - Schedule of Amounts Recognized in Consolidated Statements of Loss in Addition to Right-of-use Asset Depreciation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |||
Interest expense | ¥ 144 | ¥ 44 | ¥ 42 |
Expense relating to short-term leases (included in administrative expenses and research and development expenses) | 12 | 45 | |
Expense relating to leases of low-value assets that are not shown above as short-term leases (included in administrative expenses and research and development expenses) | 58 | 30 | |
Total interest expense amount recognized | ¥ 144 | ¥ 114 | ¥ 117 |
Financial Instruments by Cate_3
Financial Instruments by Category - Schedule of Financial Instruments by Category (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | ¥ 1,129,239 | ¥ 1,713,303 |
Financial Assets at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 424,319 | 1,713,303 |
Financial assets at FVOCI | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 576,994 | |
Financial assets at FVTPL | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 127,926 | |
Other Receivables | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 1,971 | 6,423 |
Other Receivables | Financial Assets at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 1,971 | 6,423 |
Financial assets at fair value through other comprehensive income | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 576,994 | |
Financial assets at fair value through other comprehensive income | Financial assets at FVOCI | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 576,994 | |
Cash and Cash Equivalents | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 550,274 | 1,706,880 |
Cash and Cash Equivalents | Financial Assets at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 422,348 | 1,706,880 |
Cash and Cash Equivalents | Financial assets at FVTPL | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial Assets | 127,926 | |
Financial Liabilities at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial liabilities | 95,562 | 103,444 |
Other Payables | Financial Liabilities at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial liabilities | 9,426 | 21,456 |
Trade Payables | Financial Liabilities at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial liabilities | 83,138 | 81,195 |
Lease Liabilities | Financial Liabilities at Amortized Cost | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial liabilities | ¥ 2,998 | ¥ 793 |
Other Receivables and Prepaym_3
Other Receivables and Prepayments - Schedule of Other Receivables and Prepayments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other Receivables And Prepayments [Abstract] | |||
Prepayment for clinical trials related services | ¥ 18,871 | ¥ 36,879 | |
Prepaid expenses | 2,571 | 3,953 | |
Deposits | 356 | 4,312 | |
Others | 1,615 | 2,111 | |
Other receivables and prepayments | ¥ 23,413 | $ 3,362 | ¥ 47,255 |
Other Receivables and Prepaym_4
Other Receivables and Prepayments - Additional Information (Details) | 1 Months Ended |
Mar. 31, 2022 | |
Other Receivables And Prepayments [Abstract] | |
Amortized period | 1 year |
Financial Assets at Fair Valu_2
Financial Assets at Fair Value - Schedule of Financial Assets at Fair Value Through Comprehensive Income (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Disclosure of detailed information about financial instruments [line items] | |
Non-current assets | ¥ 65,744 |
Current assets | 511,250 |
Interest income recognized in profit and loss related to debt investments | 9,392 |
Losses recognized in other comprehensive income related to debt investments | (2,513) |
U.S. Treasury Bills | |
Disclosure of detailed information about financial instruments [line items] | |
Non-current assets | 11,739 |
Current assets | 271,499 |
Listed Bonds | |
Disclosure of detailed information about financial instruments [line items] | |
Non-current assets | 54,005 |
Current assets | 52,730 |
Unlisted Debt Securities | |
Disclosure of detailed information about financial instruments [line items] | |
Current assets | 178,656 |
Government Agency Bond | |
Disclosure of detailed information about financial instruments [line items] | |
Current assets | ¥ 8,365 |
Financial Assets At Fair Valu_3
Financial Assets At Fair Value - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
Disclosure Of Financial Assets [Line Items] | |||||
Maturities of debt investments at fair value through other comprehensive income | ¥ 195,400 | $ 28,100 | |||
FVOCI short-term investments | 511,300 | $ 73,407 | |||
FVOCI long-term investments | 65,700 | $ 9,400 | |||
Level 3 | |||||
Disclosure Of Financial Assets [Line Items] | |||||
Remaining investments | 0 | ¥ 13,068 | ¥ 30,632 | ||
Level 1 | |||||
Disclosure Of Financial Assets [Line Items] | |||||
Remaining investments | ¥ 127,926 |
Financial Assets at Fair Valu_4
Financial Assets at Fair Value - Summary of Changes in Financial Instruments of Short-term and Long-term Investments (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Financial assets at fair value through other comprehensive income [abstract] | |
Additions | ¥ 737,494 |
Settlements (including coupon interest received) | (195,364) |
Accrued interest | 3,333 |
Discount accreted | 6,059 |
Change in fair value debited to other comprehensive income | (2,513) |
Exchange difference | 27,985 |
Closing Balance | ¥ 576,994 |
Financial Assets At Fair Valu_5
Financial Assets At Fair Value - Summary of Financial Assets at Fair Value Through Profit or Loss (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of fair value measurement of assets [line items] | |||
Settlements (including coupon interest received, net of fees) | ¥ (195,364) | ||
Level 3 | |||
Disclosure of fair value measurement of assets [line items] | |||
Opening balance | ¥ 13,068 | ¥ 30,632 | |
Additions | 41,000 | 114,500 | 106,600 |
Settlements (including coupon interest received, net of fees) | (41,140) | (128,004) | (124,836) |
Fair value gains recognized in profit or loss | 140 | ¥ 436 | 672 |
Closing balance | 0 | 13,068 | |
*Includes unrealized gains recognized in profit or loss attributable to balances held at the end of the reporting period | ¥ 68 | ||
Level 1 | |||
Disclosure of fair value measurement of assets [line items] | |||
Additions | 655,806 | ||
Settlements (including coupon interest received, net of fees) | (536,858) | ||
Fair value gains recognized in profit or loss | 1,711 | ||
Exchange difference | 7,267 | ||
Closing balance | ¥ 127,926 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash And Cash Equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Cash at bank | ||||||
Cash equivalents | ¥ 127,926 | |||||
Total cash and cash equivalents | 550,274 | $ 79,010 | ¥ 1,706,880 | $ 245,079 | ¥ 1,010,076 | ¥ 308,972 |
USD deposits | ||||||
Cash at bank | ||||||
Total cash and cash equivalents | 353,379 | 1,645,948 | ||||
RMB deposits | ||||||
Cash at bank | ||||||
Total cash and cash equivalents | 63,856 | 57,595 | ||||
Australian Dollar deposit | ||||||
Cash at bank | ||||||
Total cash and cash equivalents | ¥ 5,113 | ¥ 3,337 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Cash at bank | ||||||
Cash and cash equivalents | ¥ 550,274 | $ 79,010 | ¥ 1,706,880 | $ 245,079 | ¥ 1,010,076 | ¥ 308,972 |
Outside of PRC | ||||||
Cash at bank | ||||||
Cash and cash equivalents | ¥ 377,800 | ¥ 1,501,800 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Ordinary shares consolidation | 1.74 | ||
Value of share capital | $ 50,000 | $ 76,560 | $ 76,560 |
Par value per share | $ 0.0001 | ||
Ordinary Shares | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Par value per share | $ 0.000174 | $ 0.000174 |
Share Capital - Schedule of Sha
Share Capital - Schedule of Share Capital and Share Premium (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2022 shares | Mar. 31, 2021 shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 CNY (¥) shares | |
Disclosure Of Classes Of Share Capital [Line Items] | ||||||
Balance | ¥ 1,735,831 | ¥ (1,024,945) | ¥ (298,287) | |||
Issuance of ordinary shares, net of issuance costs | 132 | 1,305,819 | ||||
Conversion from preferred shares to ordinary shares | 2,743,625 | |||||
Exercise of stock options | 1,005 | |||||
Balance | ¥ 1,096,870 | $ 157,492 | ¥ 1,735,831 | ¥ (1,024,945) | ||
Ordinary Shares | ||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||
Balance, shares | shares | 57,483,410 | 57,483,410 | 19,653,791 | 17,684,770 | ||
Issuance of Ordinary Shares, shares | shares | 12,937,500 | 1,686,495 | ||||
Conversion from preferred shares to ordinary shares, shares | shares | 24,791,804 | |||||
Repurchase of ordinary shares, shares | shares | (20,765) | (20,765) | ||||
Issuance of shares to Co-Founders, shares | shares | 121,080 | 282,526 | ||||
Issuance of treasury shares, shares | shares | 25,468 | 25,468 | ||||
Shares surrendered and cancelled | shares | 60,540 | (60,540) | (60,540) | |||
Balance, shares | shares | 57,448,338 | 57,448,338 | 57,483,410 | 19,653,791 | ||
Share Capital | ||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||
Balance | ¥ 66 | ¥ 24 | ¥ 21 | |||
Issuance of ordinary shares, net of issuance costs | 14 | |||||
Conversion from preferred shares to ordinary shares | 28 | |||||
Issuance of shares to Co-Founders | 1 | |||||
Issuance of treasury shares | 2 | |||||
Balance | 66 | 66 | 24 | |||
Share Premium | ||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||
Balance | 4,094,434 | 41,466 | 38,123 | |||
Issuance of ordinary shares, net of issuance costs | ¥ 132 | 1,305,805 | ||||
Issuance of Ordinary Shares, shares | shares | 132 | 132 | ||||
Conversion from preferred shares to ordinary shares | 2,743,597 | |||||
Issuance of shares to Co-Founders | 1,417 | 3,343 | ||||
Exercise of stock options | 2,149 | |||||
Balance | ¥ 4,094,566 | 4,094,434 | 41,466 | |||
Share Capital and Share Premium | ||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||
Balance | 4,094,500 | 41,490 | 38,144 | |||
Issuance of ordinary shares, net of issuance costs | 1,305,819 | |||||
Conversion from preferred shares to ordinary shares | 2,743,625 | |||||
Issuance of shares to Co-Founders | 1,417 | 3,344 | ||||
Issuance of treasury shares | 132 | 2 | ||||
Exercise of stock options | 2,149 | |||||
Balance | ¥ 4,094,632 | ¥ 4,094,500 | ¥ 41,490 |
Share Capital - Schedule of S_2
Share Capital - Schedule of Share Capital and Share Premium (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
May 31, 2022 shares | Mar. 31, 2021 CNY (¥) shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Nov. 01, 2022 shares | |
Disclosure of classes of share capital [line items] | |||||||
Number of ADSs issued | 12,937,500 | 12,937,500 | |||||
Number of shares issued | 43,057,316 | 43,057,316 | 25,468 | ||||
Proceeds from issuance of ordinary shares | ¥ 1,431,800 | $ 219,900 | ¥ 132 | $ 18 | ¥ 1,431,775 | ||
Issuance costs | $ | $ 19,300 | ||||||
Repurchase of ordinary shares value | ¥ | ¥ (3,674) | ||||||
Shareholder voting rights | Pursuant to the Company’s shareholder agreement in effect as of the completion of the Series C financing (see Note 22), each of the Company’s founders was entitled to two or more votes to ensure the Co-Founders control the majority of the votes under certain circumstances. | Pursuant to the Company’s shareholder agreement in effect as of the completion of the Series C financing (see Note 22), each of the Company’s founders was entitled to two or more votes to ensure the Co-Founders control the majority of the votes under certain circumstances. | |||||
Ordinary shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Authorized shares | 12,937,500 | 12,937,500 | |||||
Repurchase of ordinary shares, shares | 20,765 | 20,765 | 20,765 | ||||
Repurchase of ordinary shares value | ¥ 2,500 | $ 400 | |||||
Shares surrendered and cancelled | 60,540 | (60,540) | (60,540) |
Treasury Shares - Additional In
Treasury Shares - Additional Information (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of classes of share capital [line items] | |||
Number of treasury shares | 2,407,091 | 2,407,091 | 2,563,563 |
Reserves - Additional Informati
Reserves - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reserves within equity [abstract] | ||
Percentage of net profit to offset prior losses | 10% | |
Percentage of reserve fund of registered capital | 50% | |
Statutory reserve | ¥ 221.5 | ¥ 288.9 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||
May 01, 2022 | Dec. 01, 2020 USD ($) shares | Jan. 20, 2020 shares | Dec. 20, 2018 CNY (¥) shares | Aug. 31, 2020 USD ($) shares | Apr. 30, 2020 CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 CNY (¥) shares ¥ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2019 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Nov. 01, 2022 shares | Mar. 31, 2021 shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Period of grant of share-based payment arrangement | 10 years | 10 years | ||||||||||||||
Options granted vesting term | Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years; 25% of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months. Some options are vested in equal monthly installments or annual installments over the entire service period or vested immediately upon the grant date in instances where services had already been performed in their entirety. | Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years; 25% of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months. Some options are vested in equal monthly installments or annual installments over the entire service period or vested immediately upon the grant date in instances where services had already been performed in their entirety. | ||||||||||||||
Vesting period | 4 years | 4 years | ||||||||||||||
Vesting rights percentage | 25% | 25% | ||||||||||||||
Vest in equal monthly installments | 36 months | 36 months | ||||||||||||||
Share options granted | 2,986,547 | 2,986,547 | 2,403,660 | 1,500,887 | ||||||||||||
Weighted average remaining contractual life of options outstanding | 8 years 8 months 12 days | 8 years 8 months 12 days | 9 years 2 months 12 days | 9 years 3 months 18 days | ||||||||||||
Number of shares issued | 43,057,316 | 43,057,316 | 25,468 | |||||||||||||
Consideration, contingent on achieving of R&D milestones | ¥ | ¥ 0 | ¥ 0 | ||||||||||||||
Number of shares issued for pre money valuation amount | ¥ | ¥ 600,000,000 | |||||||||||||||
Share-based compensation expenses | ¥ | ¥ 45,598,000 | ¥ 57,863,000 | ¥ 25,190,000 | |||||||||||||
Share based compensation arrangement issuable upon the exercise of incentive share options | 60,000,000 | 60,000,000 | ||||||||||||||
Expense from share-based payment transactions with employees | ¥ | ¥ 45,598,000 | ¥ 57,863,000 | 5,535,000 | |||||||||||||
Other Payables and Accruals | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Amounts withheld from employees paychecks | ¥ 200,000 | $ 23 | ||||||||||||||
Co-Founders | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Share-based compensation expenses | ¥ | 1,200,000 | ¥ 2,700,000 | ||||||||||||||
Fair value of share based payment on grant date | $ / shares | $ 0.9 | |||||||||||||||
Fair value of share based payment on grant date at consolidation | $ / shares | $ 1.57 | |||||||||||||||
Risk-free interest rate | 2.50% | |||||||||||||||
Expected volatility | 60% | |||||||||||||||
Share Purchase Agreement | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Share-based compensation expenses | ¥ | ¥ 19,700,000 | |||||||||||||||
2019 Stock Incentive Plan | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Share options granted | 897,660 | 1,500,887 | ||||||||||||||
2021 Stock Incentive Plan | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Ordinary shares reserved | 5,348,217 | 5,348,217 | ||||||||||||||
Period of grant of share-based payment arrangement | 10 years | 10 years | ||||||||||||||
Options granted vesting term | Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years; 25% of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months. | Options granted under the plan are valid and effective for 10 years from the date of grant and vest over a service period which is generally four years; 25% of the granted options vest on the first anniversary of the grant date and the remaining options vest in equal monthly installments over next 36 months. | ||||||||||||||
Vesting period | 4 years | 4 years | ||||||||||||||
Vesting rights percentage | 25% | 25% | ||||||||||||||
Vest in equal monthly installments | 36 months | 36 months | ||||||||||||||
Shares reserved for future issuance | 6,000,000 | 6,000,000 | ||||||||||||||
Share options granted | 2,986,547 | 2,986,547 | 1,506,000 | |||||||||||||
Increase in percentage of shares equal to lesser of aggregate number of ordinary shares | 2.50% | 5% | 5% | |||||||||||||
Ordinary Shares | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Number of shares issued at consolidation | 121,080 | 121,080 | ||||||||||||||
Ordinary Shares | Co-Founders | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Shares reserved for future issuance | 210,682 | |||||||||||||||
Number of shares issued | 491,596 | 210,682 | 210,682 | |||||||||||||
Number of shares vested | 140,456 | 351,140 | ||||||||||||||
Ordinary Shares | Connect Union | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Shares reserved for future issuance | 342,144 | |||||||||||||||
Number of shares issued | 798,330 | 1,140,474 | 342,144 | 342,144 | ||||||||||||
Ordinary Shares | Series B Financing | Co-Founders | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Number of shares issued | 702,278 | |||||||||||||||
Series C Preferred Shares | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Number of shares issued | 21,349,537 | 0 | 21,349,537 | |||||||||||||
Series C Preferred Shares | Co-Founders | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Number of shares issued | 80,457 | |||||||||||||||
Number of shares issued at consolidation | 46,232 | |||||||||||||||
Series C Preferred Shares | Share Purchase Agreement | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Number of shares issued | 3,162,894 | 18,186,643 | ||||||||||||||
Number of shares issued at consolidation | 1,817,755 | 10,452,094 | ||||||||||||||
Cash consideration | $ | $ 20,000 | $ 115,000 | ||||||||||||||
2021 Employee Share Purchase Plan | ||||||||||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||||||||||
Shares reserved for future issuance | 600,000 | 600,000 | ||||||||||||||
Percentage of shares equal to lesser of aggregate number of ordinary shares | 5% | 5% | 1% | |||||||||||||
Increase in percentage of shares equal to lesser of aggregate number of ordinary shares | 0% | 1% | 1% | |||||||||||||
Percentage of increase decrease in payroll deductions of employees compensation | 15% | |||||||||||||||
Percentage of purchase of ordinary shares | 85% | |||||||||||||||
Purchase of employees shares | 25,468 | 25,468 | ||||||||||||||
Shares purchased at discounted price | ¥ / shares | ¥ 0.74 | |||||||||||||||
Expense from share-based payment transactions with employees | ¥ 300,000 | $ 39 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Options Outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |||
Number of Options, Options outstanding, Beginning Balance | 3,748,389 | 1,665,883 | 190,762 |
Number of Options, Granted during the year | 2,986,547 | 2,403,660 | 1,500,887 |
Number of Options, Exercised during the year | (163,773) | ||
Number of Options, Forfeited during the year | (1,631,309) | (157,381) | (25,766) |
Number of Options, Options outstanding, Ending Balance | 5,103,627 | 3,748,389 | 1,665,883 |
Number of Options, Options exercisable at December 31, 2021 | 1,329,119 | ||
Weighted Average Exercise Price per Share Option, Granted during the year | $ / shares | $ 3.4 | $ 13.8 | $ 6.6 |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ / shares | 0.9 | ||
Weighted Average Exercise Price per Share Option, Forfeited during the year | $ / shares | $ 9.6 | $ 14.7 | $ 0.9 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Key Assumptions for Options Granted (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) yr $ / shares | Dec. 31, 2021 USD ($) yr $ / shares | Dec. 31, 2020 USD ($) yr $ / shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Forfeiture rate | 3% | ||
ESPP | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Weighted average exercise price during the year | $ 0.74 | ||
Dividend yield | |||
Forfeiture rate | 3% | ||
Weighted average fair value of options granted during the year | $ | $ 0.71 | ||
Stock Incentive Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Weighted average exercise price during the year | $ 3.44 | $ 13.8 | $ 6.6 |
Option life | yr | 10 | 10 | 10 |
Expected early exercise multiple | 2.2 | 2.2 | |
Dividend yield | |||
Forfeiture rate | 9.50% | ||
Weighted average fair value of options granted during the year | $ | $ 1.98 | $ 10.6 | $ 4.2 |
Bottom of range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Forfeiture rate | 7.70% | ||
Bottom of range | ESPP | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Grant date share price | $ 0.86 | ||
Risk-free interest rate | 1.50% | ||
Expected volatility | 51.10% | ||
Option life | yr | 0.5 | ||
Bottom of range | Stock Incentive Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Grant date share price | $ 0.75 | $ 4.3 | $ 2.1 |
Risk-free interest rate | 1.90% | 1.20% | 0.80% |
Expected volatility | 61.40% | 60.50% | 61.80% |
Expected early exercise multiple | 2.2 | ||
Forfeiture rate | 3% | 3% | |
Top of range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Forfeiture rate | 10.80% | ||
Top of range | ESPP | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Grant date share price | $ 1.86 | ||
Risk-free interest rate | 4.80% | ||
Expected volatility | 60.20% | ||
Option life | yr | 2 | ||
Top of range | Stock Incentive Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Grant date share price | $ 4.91 | $ 23.3 | $ 11.1 |
Risk-free interest rate | 3.40% | 1.70% | 1.10% |
Expected volatility | 62% | 62.20% | 77.40% |
Expected early exercise multiple | 2.8 | ||
Forfeiture rate | 10.80% | 9.60% |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Key Assumptions for Options Granted (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Forfeiture rate for executives and all other employees | 3% |
ESPP | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Forfeiture rate for executives and all other employees | 3% |
Discounted ESPP price | $ 0.74 |
Bottom of range | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Forfeiture rate for executives and all other employees | 7.70% |
Top of range | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Forfeiture rate for executives and all other employees | 10.80% |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Share-Based Compensation Expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation expenses | ¥ 45,598 | ¥ 57,863 | ¥ 25,190 |
Research and Development Expenses | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation expenses | 20,226 | 26,532 | 3,523 |
Administrative Expenses | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation expenses | ¥ 25,372 | ¥ 31,331 | ¥ 21,667 |
Other Payables and Accruals - S
Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Trade and other payables [abstract] | |||
Construction payables | ¥ 1,424 | ¥ 16,576 | |
Payroll, welfare and bonus payables | 14,959 | 11,384 | |
Accrued professional service fee | 5,696 | 2,318 | |
Other payables | 2,306 | 2,562 | |
Other payables and accruals | ¥ 24,385 | $ 3,501 | ¥ 32,840 |
Financial Instruments with Pr_3
Financial Instruments with Preferred Rights - Summary of Series of Financings by Issuing Preferred Shares (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Nov. 01, 2022 | Dec. 31, 2020 | |
Disclosure Of Financial Instruments [Line Items] | |||
Number of preferred shares | 43,057,316 | 25,468 | |
Subscription consideration | ¥ 1,473,373 | ||
Series Pre-A Preferred Shares | |||
Disclosure Of Financial Instruments [Line Items] | |||
Date of subscription | Mar. 03, 2016 | ||
Number of preferred shares | 3,109,000 | ||
Subscription consideration | ¥ 33,110 | ||
Series A Preferred Shares | |||
Disclosure Of Financial Instruments [Line Items] | |||
Date of subscription | Jan. 03, 2017 | ||
Number of preferred shares | 8,471,200 | ||
Subscription consideration | ¥ 137,868 | ||
Series B Preferred Shares | |||
Disclosure Of Financial Instruments [Line Items] | |||
Date of subscription | Dec. 20, 2018 | ||
Number of preferred shares | 10,127,579 | ||
Subscription consideration | ¥ 379,148 | ||
Series C Preferred Shares | |||
Disclosure Of Financial Instruments [Line Items] | |||
Date of subscription | Aug. 21, 2020 | ||
Date of subscription | Dec. 01, 2020 | ||
Number of preferred shares | 21,349,537 | 0 | |
Subscription consideration | ¥ 923,247 |
Financial Instruments with Pr_4
Financial Instruments with Preferred Rights - Additional Information (Details) | 12 Months Ended | |||
Mar. 19, 2021 | Dec. 31, 2022 $ / shares shares | Nov. 01, 2022 shares | Mar. 18, 2021 shares | |
Disclosure Of Financial Instruments [Line Items] | ||||
Number of shares issued | 43,057,316 | 25,468 | ||
Preferred shares conversion ratio | 1 | |||
Financial Instruments with Preferred Rights | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Conversion from preferred shares to ordinary shares after share consolidation | 24,745,572 | |||
Preference Shares | Financial Instruments with Preferred Rights | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Number of shares issued at consolidation | 46,232 | |||
Number of shares issued | 24,791,804 | |||
Number of shares outstanding | 24,791,804 | |||
Initial public offering price | $ / shares | $ 17 | |||
Preferred shares conversion ratio | 1 |
Financial Instruments with Pr_5
Financial Instruments with Preferred Rights - Movements of Financial Instruments with Preferred Rights (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Financial Instruments [Line Items] | |||
Share-based compensation to additional Series C preferred shareholder | ¥ 19,655 | ||
Change in fair value due to foreign currency translation recognized in other comprehensive income | ¥ 114,877 | ¥ (37,038) | 47,032 |
Financial Instruments with Preferred Rights | |||
Disclosure Of Financial Instruments [Line Items] | |||
Beginning balance | 2,071,508 | 643,008 | |
Issuance of Series C Preferred Shares | 923,247 | ||
Change in fair value recognized in profit or loss | 674,269 | 579,286 | |
Share-based compensation to additional Series C preferred shareholder | 19,655 | ||
Change in fair value due to foreign currency translation recognized in other comprehensive income | (2,152) | (93,688) | |
Converted to ordinary shares upon IPO | ¥ (2,743,625) | ||
Ending balance | ¥ 2,071,508 |
Cash Flow Information - Summary
Cash Flow Information - Summary of Cash Used in Operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | ||
Disclosure Of Cash Flow Information [Abstract] | |||||
Net loss before income tax | ¥ (795,018) | $ (114,152) | ¥ (1,305,127) | ¥ (779,225) | |
Adjustments for: | |||||
Interest for lease liabilities | 144 | 44 | 42 | ||
-Investment and interest income from investments at fair value through profit and loss and wealth management products | (140) | (436) | (672) | ||
-Investment income from wealth management products | (9,392) | ||||
-Amortization of intangible assets | 60 | 43 | 7 | ||
-Depreciation of property, plant and equipment | 4,861 | 3,130 | 955 | ||
-Depreciation of rights-of-use assets | 2,019 | 909 | 481 | ||
Net impairment losses | 32,805 | [1] | 4,710 | ||
-Share-based compensation expenses | 45,598 | 57,863 | 25,190 | ||
-Net foreign exchange differences | (9,629) | 3,309 | 6,772 | ||
-Fair value changes of financial instruments with preferred rights | 674,269 | 579,286 | |||
-Issuance cost of financial instruments with preferred rights | 2,851 | ||||
-Loss on disposal of property, plant and equipment | 4 | 250 | |||
Changes in working capital | |||||
-Other receivables and prepayments | 23,084 | (16,116) | (9,350) | ||
-Other non-current assets | 17,052 | (8,206) | (3,906) | ||
-Other payables and accruals | 6,315 | (11,459) | 8,558 | ||
-Trade payables | 2,572 | 56,601 | 1,850 | ||
Net cash used in operations | ¥ (679,665) | $ (97,588) | ¥ (544,926) | ¥ (167,161) | |
[1] The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Cash Flow Information - Summa_2
Cash Flow Information - Summary of Supplemental Cash Flow Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Cash Flow Information [Abstract] | |||
Interest received | ¥ 2,894 | ¥ 622 | ¥ 1,381 |
Income taxes paid | ¥ 3,221 |
Cash Flow Information - Summa_3
Cash Flow Information - Summary of Non-cash Investing and Financing Activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Cash Flow Information [Abstract] | |||
Construction payables | ¥ 1,424 | ¥ 16,576 | |
Fair value changes of financial instruments with preferred rights | 674,269 | ¥ 579,286 | |
Share-based compensation to additional Series C preferred shareholder | 19,655 | ||
Non-cash investing and financing activities | ¥ 1,424 | ¥ 690,845 | ¥ 598,941 |
Cash Flow Information - Summa_4
Cash Flow Information - Summary of Reconciliation of Liabilities Arising from Financing Activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments with Preferred Rights | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | ¥ 2,071,508 | ¥ 643,008 | |
Cash flows | 923,247 | ||
Differences of foreign currency translation | (2,152) | (93,688) | |
Changes in fair value | 674,269 | 579,286 | |
Conversion to ordinary shares | (2,743,625) | ||
Share-based compensation to additional Series C preferred shareholder | 19,655 | ||
Ending balance | 2,071,508 | ||
Lease Liabilities | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | ¥ 793 | 913 | 882 |
Cash flows | (1,515) | (805) | (538) |
New leases | 3,576 | 641 | 527 |
Interest expenses | 144 | 44 | 42 |
Ending balance | ¥ 2,998 | ¥ 793 | ¥ 913 |
Commitments - Schedule of Capit
Commitments - Schedule of Capital Commitments (Details) ¥ in Thousands | Dec. 31, 2021 CNY (¥) |
Equipment and Intangible Assets - Contracted but not provided for | |
Capital commitments [abstract] | |
Capital commitments | ¥ 146,878 |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |||
Capital commitments [abstract] | ||||||
Capital commitments | ¥ 0 | |||||
Net impairment losses | 32,805,000 | [1] | $ 4,710 | |||
Construction in Progress | ||||||
Capital commitments [abstract] | ||||||
Capital commitments | ¥ 146,900,000 | $ 23,000 | ||||
Net impairment losses | [1] | ¥ 32,805,000 | ||||
[1] The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of RMB 32.8 million for the year ended December 31, 2022. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Significant Transactions with Related Parties (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | ¥ 0 | ¥ 0 | |
Hangzhou Simo Company Limited | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | ¥ 5,948,000 | ||
Frontage Laboratories (Suzhou) Company Limited | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | 2,157,000 | ||
Hangzhou Tigermed Consulting Company Limited | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | 1,069,000 | ||
Beijing Medical Development (Suzhou) Company Limited | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | 301,000 | ||
Shanghai Tigermed Consulting Company Limited | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Purchase of clinical trials related services | ¥ 34,000 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Balances with Related Parties (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Prepayments | ¥ 18,871 | ¥ 36,879 |
Related Party Transactions - Su
Related Party Transactions - Summary of Key Management Personnel Compensation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions [abstract] | |||
Wages, salaries and bonuses | ¥ 18,254 | ¥ 18,100 | ¥ 8,013 |
Share-based compensation expenses | 18,293 | 28,266 | 1,148 |
Contributions to defined benefit plan | 971 | ||
Welfare, housing funds and other | 487 | 308 | 180 |
Key management personnel compensation | ¥ 37,034 | ¥ 46,674 | ¥ 10,312 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | ||
May 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||||
Related party balance | ¥ 0 | ¥ 0 | ||
Number of shares surrendered and cancelled | 60,540 | |||
Shares surrendered and cancelled, consideration value | ¥ 0 | |||
Ordinary Shares | ||||
Disclosure of transactions between related parties [line items] | ||||
Repurchase of ordinary shares | 20,765 | 20,765 |
Events After the Reporting Pe_2
Events After the Reporting Period - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Apr. 01, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Share options granted | shares | 2,986,547 | 2,403,660 | 1,500,887 | |
weighted average exercise price | $ / shares | $ 3.4 | $ 13.8 | $ 6.6 | |
Ordinary Share Options | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Share options granted | shares | 1,607,787 | |||
weighted average exercise price | $ / shares | $ 1.26 |
Restricted Net Assets and Par_3
Restricted Net Assets and Parent Company Only Condensed Financial Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets And Parent Company Condensed Financial Information [Abstract] | |
Percentage of annual require net after tax profits | 10% |
Percentage of reserve fund of registered capital | 50% |
Restricted Net Assets and Par_4
Restricted Net Assets and Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Non-current assets | ||||||
Financial assets at fair value through other comprehensive income | ¥ 511,250 | |||||
Total non-current assets | 126,993 | $ 18,234 | ¥ 101,524 | |||
Current assets | ||||||
Cash and cash equivalents | 550,274 | 79,010 | 1,706,880 | $ 245,079 | ¥ 1,010,076 | ¥ 308,972 |
Financial assets at fair value through other comprehensive income | 65,744 | |||||
Total current assets | 1,084,937 | 155,779 | 1,754,135 | |||
Total assets | 1,211,930 | 174,013 | 1,855,659 | |||
Non-current liabilities | ||||||
Total non-current liabilities | 6,243 | 897 | 5,163 | |||
Current liabilities | ||||||
Trade payables | 83,138 | 11,937 | 81,195 | |||
Other payables and accruals | 24,385 | 3,501 | 32,840 | |||
Total current liabilities | 108,817 | 15,624 | 114,665 | |||
Total liabilities | 115,060 | 16,521 | 119,828 | |||
Net assets | 1,096,900 | 157,500 | 1,735,831 | |||
SHAREHOLDERS' EQUITY | ||||||
Share capital | 66 | 9 | 66 | |||
Share premium | 4,094,566 | 587,911 | 4,094,434 | |||
Treasury shares | (1,164) | (167) | (1,164) | |||
Other reserves | 71,120 | 10,212 | (41,244) | |||
Accumulated losses | (3,175,220) | (455,908) | (2,378,165) | |||
Parent | ||||||
Non-current assets | ||||||
Interest in a subsidiary | 2,004,960 | 287,879 | 1,177,380 | |||
Financial assets at fair value through other comprehensive income | 65,744 | 9,440 | ||||
Total non-current assets | 2,070,704 | 297,319 | 1,177,380 | |||
Current assets | ||||||
Cash and cash equivalents | 334,106 | 47,972 | 1,464,637 | $ 210,297 | ¥ 885,611 | ¥ 213,253 |
Financial assets at fair value through other comprehensive income | 511,250 | 73,407 | ||||
Other receivables | 90,197 | 12,951 | 86,352 | |||
Other current assets | 2,571 | 369 | ||||
Total current assets | 938,124 | 134,699 | 1,550,989 | |||
Total assets | 3,008,828 | 432,018 | 2,728,369 | |||
Current liabilities | ||||||
Trade payables | 49 | |||||
Other payables and accruals | 51,051 | 7,330 | 34,190 | |||
Total current liabilities | 51,051 | 7,330 | 34,239 | |||
Total liabilities | 51,051 | 7,330 | 34,239 | |||
Net assets | (2,957,777) | 424,688 | 2,694,130 | |||
SHAREHOLDERS' EQUITY | ||||||
Share capital | 66 | 9 | 66 | |||
Share premium | 4,094,566 | 587,911 | 4,094,434 | |||
Treasury shares | (1,164) | (167) | (1,164) | |||
Other reserves | (282,789) | (40,605) | (10,359) | |||
Accumulated losses | (1,418,480) | (203,670) | (1,388,847) | |||
Total shareholders' (deficit)/equity | ¥ (2,957,777) | $ 424,688 | ¥ 2,694,130 |
Restricted Net Assets and Par_5
Restricted Net Assets and Parent Company Only Condensed Financial Information - Condensed Statements of Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Financial Information [Line Items] | ||||
Administrative expenses | ¥ (139,444) | $ (20,022) | ¥ (122,445) | ¥ (47,720) |
Other (losses)/gains-net | 12,433 | 1,785 | (9,966) | (6,100) |
Operating loss | (805,600) | (115,700) | (631,436) | (197,763) |
Finance (costs)/income - net | 10,571 | 1,517 | 578 | (2,176) |
Fair value loss of financial instruments with preferred rights | (674,269) | (579,286) | ||
Net loss before income tax | (795,018) | (114,152) | (1,305,127) | (779,225) |
Income tax expense | (2,037) | (292) | (1,697) | |
Net loss | (797,055) | (114,444) | (1,306,824) | (779,225) |
Parent | ||||
Disclosure Of Financial Information [Line Items] | ||||
Administrative expenses | (41,694) | (5,987) | (43,710) | (29,540) |
Other (losses)/gains-net | 2,669 | 383 | ||
Operating loss | (39,025) | (5,604) | (43,710) | (29,540) |
Finance (costs)/income - net | 9,392 | 1,349 | (2,758) | |
Fair value loss of financial instruments with preferred rights | (674,269) | (579,286) | ||
Net loss before income tax | (29,633) | (4,255) | (717,979) | (611,584) |
Net loss | ¥ (29,633) | $ (4,255) | ¥ (717,979) | ¥ (611,584) |
Restricted Net Assets and Par_6
Restricted Net Assets and Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure Of Financial Information [Line Items] | ||||
Net cash used in operating activities | ¥ (679,700) | $ (97,588) | ¥ (544,926) | ¥ (167,161) |
Net cash used in investing activities | (571,310) | (82,031) | (34,025) | 2,932 |
Net cash generated from financing activities | (625) | (90) | 1,316,099 | 918,761 |
Net increase/(decrease) in cash and cash equivalents | (1,251,600) | (179,709) | 737,148 | 754,532 |
Cash and cash equivalents at the beginning of year | 1,706,880 | 245,079 | 1,010,076 | 308,972 |
Effects of exchange rate changes on cash and cash equivalents | 94,994 | 13,640 | (40,344) | (53,428) |
Cash and cash equivalents at end of year | 550,274 | 79,010 | 1,706,880 | 1,010,076 |
Parent | ||||
Disclosure Of Financial Information [Line Items] | ||||
Net cash used in operating activities | (22,500) | (3,231) | (31,025) | (4,766) |
Net cash used in investing activities | (1,244,278) | (178,657) | (672,529) | (204,170) |
Net cash generated from financing activities | 964 | 138 | 1,319,418 | 934,284 |
Net increase/(decrease) in cash and cash equivalents | (1,265,814) | (181,750) | 615,864 | 725,348 |
Cash and cash equivalents at the beginning of year | 1,464,637 | 210,297 | 885,611 | 213,253 |
Effects of exchange rate changes on cash and cash equivalents | 135,283 | 19,425 | (36,838) | (52,990) |
Cash and cash equivalents at end of year | ¥ 334,106 | $ 47,972 | ¥ 1,464,637 | ¥ 885,611 |